Giga Mexico Could Produce Sub-$30K Car, Model Y, Batteries And Cybertruck: New Details Highlight Importance Of New Factory

A new Gigafactory from Tesla Inc TSLA in Mexico could help the company increase its production levels in future years. Here’s a look at recent comments from Mexican government officials on what the facility’s construction and production could look like. What Happened: In March, rumors circulated that the Gigafactory Mexico could be built in record time.

The rumors were later shut down in April with an estimate of 12 to 15 months of construction for the facility. The new manufacturing facility will be built as a three-phase project and will produce the Cybertruck, according to Samuel Garcia Sepulveda, governor of Nuevo Leon where the Gigafactory is being built. “We are not sure about the scope of each of the works, because every meeting we have with Tesla makes us see that the amount they told us is going to be far below the real amount,” Garcia Sepulveda said in a note, reported by Milenio and shared by Teslarati .

The comments from Garcia Sepulveda come after a meeting with the Economic Development Council of Nuevo Leon. The governor said there is no “real scope of each of the works” with the plans for the Gigafactory constantly changing. Garcia Sepulveda said the facility will be around 1,976 acres.

Production of the Cybertruck, Model Y, a lower-cost model and other vehicles is expected at the facility according to the governor, along with the production of batteries, which is potentially a new nugget of information for the new Gigafactory. “The size of the factory that they told us is going to be double or triple, and that not only will it be the new Tesla design economic car, but the Cybertruck, probably another production line for the Y and batteries. ” The governor called the new facility three or four factories in one.

Related Link: Cybertruck Delivery Event: Elon Musk Highlights Tesla’s ‘Best Product,’ Says ‘Finally The Future Will Look Like The Future’ Why It’s Important: Tesla announced Gigafactory Mexico earlier this year at its Investor Day. The facility is expected to be one of the manufacturing facilities for a new sub-$30k electric vehicle and potentially a robotaxi vehicle. The Cybertruck is currently made exclusively at Gigafactory Texas with deliveries recently started in November.

The highly anticipated vehicle has over one million reservations and Tesla plans to hit production levels of 250,000 units by 2025. Wedbush analyst Daniel Ives recently predicted Tesla would introduce a sub-$30k car in 2024 with Giga Mexico being the production home for the vehicle. In a recent interview with Sandy Munro, Tesla CEO Elon Musk said the new low-cost vehicle would be produced at Gigafactory Texas first and later produced at Gigafactory Mexico.

“The revolution in manufacturing that will be represented by that car will blow people’s minds,” Musk said. Musk added that the technological advancement in the production of the next vehicle will surpass that of any automotive company on the planet. The new comments from the governor of the Gigafactory Mexico region highlight the importance of the new factory as it could serve as a production hub for the Cybertruck, new low-cost vehicle and also help with production of the Model Y and batteries for vehicles.

TSLA Price Action: Tesla shares closed Wednesday at $247. 14 versus a 52-week trading range of $101. 81 to $299.

29. Shares of Tesla are up 131% year-to-date in 2023. Read Next: If You Invested $1,000 In Tesla Stock When The Cybertruck Was Unveiled, Here’s How Much You’d Have Today Photo: Model Y, courtesy of Tesla.