Tesla’s gigafactory in Nuevo León
Tesla’s gigafactory in Nuevo León
A part of this deal's history, a look into Monterrey's near future, and an analysis of Tesla's growth over the years.
These are the most important things you need to know about why and how this deal went down:
Location considerations and supply chain
Before Elon Musk decided to install the new Tesla plant in Monterrey, he considered a location near Mexico City (CDMX) known as Hidalgo.
Tesla wanted to strengthen its supply chain and develop suppliers in northern Mexico.
Mexico is the main trading partner of the United States in terms of automotive parts importation.
The company showed interest in tier 1 and tier 2 suppliers, labor conditions, unions, and local universities.
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Selection of Monterrey
Executives from Tesla visited Monterrey, where they were drawn to the developing automotive hub and the presence of suppliers in the region.
The final chosen location for the plant was Santa Catarina in the state of Nuevo León, due to the presence of mountains, proximity to suppliers in Ramos Arizpe, and accessibility for exports.
The company acquired the land directly and did not engage in real estate matters with the government of Nuevo León.
Impact and focus on development
The former president of a very well known university in Nuevo León commonly referred to as Tec de Monterrey, Salvador Alva, emphasized the significance of Tesla's arrival to Nuevo León, but stressed the need to focus on the comprehensive development of the city as a whole, and that it should become a knowledge-based economy.
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