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Insiders Say Tesla Gearing Up To Announce Gigafactory In This US Neighbor Next Week: Report

Tesla, Inc. TSLA could announce its next Gigafactory as early as next week.

What Happened: Tesla is going through the process of finalizing plans to build Gigafactory 6 in Santa Catarina in Monterrey city, the capital of Nuevo Leon state, located in northeastern Mexico, Bloomberg reported on Friday, citing people familiar with the matter. The company has been in discussions with the state government and Mexico’s foreign relations ministry, the report added.

Tesla CEO Elon Musk visited Nuevo Leon in October to meet with officials there. The state government has already vested Tesla with the privilege of an exclusive customs lane for parts crossing the border to reach the EV maker’s Giga Austin, Texas plant.

The rumor is in line with Musk’s suggestion at the company’s annual shareholders meeting in August that a decision concerning the next Gigafactory will likely be made by the end of this year.

See also: How to Invest In Tesla (TSLA) Stock

Why It’s Important: Mexican-made EVs qualify for U.S. government subsidies allowed under the Infrastructure bill that was signed into law in August.

Tesla opened two new Gigafactories in 2022 – Gigafactory 4 in Berlin, Germany, and Gigafactory 5 in Austin, as it strives to ramp up production capacity to 20 million units by 2030.

Tesla shares are going through a lean patch amid demand concerns and the noise surrounding Musk’s Twitter acquisition.

The stock closed Friday’s session down 4.72% at a fresh two-year low of $150.23, according to Benzinga Pro data.

Read next: As Tesla Extends Discounts To Europe, Rival Ford Hikes F-150 Lightning Prices For 3rd Time Since Launch

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