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Tesla’s subsequent automobile meeting plant will probably be in Mexico close to Monterrey, CEO Elon Musk introduced Wednesday.
“We’re super excited about it,” Musk mentioned throughout an investor day for the corporate. “We’ll continue to expand production at all of our existing factories. So this is not moving output to anywhere, from anywhere. This is supplemental production.”
The firm at the moment has capability to construct about 2 million vehicles a yr at 4 factories, in Fremont, California; Shanghai, China; Austin, Texas; and Berlin, Germany. It has set a purpose of ultimately constructing 20 million vehicles a yr. The firm delivered simply over 1.3 million vehicles in 2022. The largest automaker on this planet by manufacturing quantity, Toyota, delivered simply over 10 million vehicles globally in 2022.
Tesla didn’t touch upon the price of the brand new plant. The news was a affirmation of plans introduced Tuesday by Mexican President Andres Manuel Lopez Obrador for Tesla to construct its subsequent manufacturing facility within the nation. Reuters reported that Mexican officers mentioned the plant might price $1 billion.
The firm estimates to construct the extra crops wanted to succeed in 20 million automobiles will price a complete of $150 billion to $175 billion, together with the $28 billion in funding that it has already made in its historical past.
“Maybe this total investment looks large,” mentioned CFO Zachary Kirkhorn. “I think its quite small relative to our ambitions.”
The firm additionally introduced that earlier Wednesday it constructed 4 million automobiles in its historical past.
Shares of Tesla
(TSLA) slipped greater than 5% in after-hours buying and selling Wednesday, though that was up a bit from a bigger decline earlier than Musk’s announcement greater than three hours into the presentation. There had been hope by some buyers that Tesla
(TSLA) would announce particulars a couple of subsequent technology of automobiles. Musk declined to reply a query concerning the subsequent technology automobile.
“We will have a proper sort of product event,” Musk mentioned. “We’d be jumping the gun if we were to answer that question.”
In response to a different query from an analyst, Musk mentioned he doesn’t anticipate Tesla ever having greater than 10 completely different automobiles in its product lineup. He derided the broad choices of competing automakers as merely a “shuffling” of many comparable fashions.
The Inflation Reduction Act handed final yr restored tax credit of as much as $7,500 to patrons of the inexpensive Tesla vehicles, the Model 3 and Model Y, so long as their record worth is beneath $55,000. To qualify for the tax credit score, the vehicles have to be assembled in North America, so the eventual output from the plant in Mexico ought to qualify.
Most of the worldwide automakers have already got meeting crops in Mexico. According to Reuters, there are 20 auto meeting crops within the nation. General Motors has three, Ford has two, together with one which make its Mustang Mach-E, the EV SUV that could be a competitor to Tesla. Stellantis — which builds vehicles beneath the Chrysler, Dodge, Ram and Jeep manufacturers — has three.
In addition Toyota, Honda, Nissan, Volkswagen, Audi, Mazda, Mercedes, Kia and BMW all have crops in Mexico.
According to statistics from the US Trade Administration, part of the Commerce Department, Mexican crops have been producing slightly below 4 million vehicles a yr within the years earlier than the pandemic decreased the provision of auto components, notably pc chips, and auto manufacturing worldwide. They produced about 3.5 million vehicles final yr. That makes it the seventh largest nation by way of auto manufacturing.
But 90% of the vehicles it builds are exported, with 76% destined for the United States.
Source web site: www.cnn.com
