Where Will the New Tesla Factory Be Built? Musk: Consider Canada or Mexico

On June 14, US electric car maker Tesla CEO Elon Musk said a few days ago that Tesla may not necessarily choose to set up a factory in the United States in the future, and is considering building a new North American factory in Canada and Mexico.

Last week, Musk held a company-wide staff meeting. Musk was asked in a question-and-answer session with employees where Tesla's next U.S. factory would be located. Musk said Tesla hasn't decided yet. But he made it clear that there might not be a U.S. factory either. "We're looking for a suitable factory location, but we're looking at a larger site all over North America, including Canada, Mexico, and the U.S.," Musk said, sounding like Tesla was aggressive in looking for a location, but he also made it clear that Tesla's top priority in North America is to make the Gigafactory in Texas mass production. Tesla has previously said that it aims to have mass production at its Gigafactory in Texas by the end of 2022.

Musk: It's going to be difficult to get the Texas Gigafactory to mass production

It is reported that Texas super factory is Tesla's fifth factory after Nevada super factory, New York super factory, Shanghai Super factory and Berlin super factory, and it is also Tesla's fourth automobile assembly factory after Fremont factory, Shanghai factory and Berlin factory. The plant is located in del Valle outside Austin, covering an area of about 2000 acres (8.09 square kilometers). It is Tesla's largest real estate by far. It is about 5 minutes away from Austin Airport and 15 minutes away from Austin city center.

Musk said at the meeting: "The immediate priority is to get the Texas Gigafactory to mass production, but it is very difficult to get there. Getting the Texas Gigafactory to mass production is much more important than finding a new site, and of course we are also in the process. Finding (a new site)..." Increasing production of a complex product like electric vehicles is undoubtedly difficult. While Tesla has a lot of experience ramping up vehicle production, ramping up production at Tesla's Texas Gigafactory has been particularly difficult. That's because the Model Y electric cars built at the Texas Gigafactory are equipped with brand-new Tesla 4680 cells and structural battery packs. Tesla needs to increase production of new batteries and new electric SUVs by upgrading the battery pack structure.

Tesla may announce new factory site by the end of the year

Tesla has previously said that it aims to have mass production at its Gigafactory in Texas by the end of 2022. Musk also said that Tesla could announce the location of the new factory by the end of the year. Of course, Tesla's next factory could still be built in the US. But judging by the way employees ask questions and Musk answers, it's also possible that Tesla could build a new factory in Canada or Mexico.

When asked by employees where the next Tesla factory in the U.S. would be, Musk was quick to reply that the locations were all over North America, with specific mentions of Canada and Mexico. Musk did mention in the past that Tesla would build a factory on or near the east coast of the United States. Maybe the east coast of Canada is more suitable. Canada, which has all the natural resources and qualified labor needed to make batteries, could be home to the next Tesla Gigafactory.