Tesla chooses Texas over Mexico to manufacture next-generation electric cars

Tesla has decided to build its next generation electric cars in Texas instead of the planned Giga factory in Mexico. This is according to a new excerpt from Elon Musk's upcoming biography and confirms that the company has changed its original plans.

Background

Earlier this year, during Tesla's Investor Day 2023, Elon Musk unveiled a new car production system called "Unboxed Process". The system aims to make production faster, more efficient and enable the production of cheaper electric cars. Tesla originally planned to use this new system in its upcoming Gigafactory in Nuevo Leon, Mexico.

Why the change?

According to Walter Isaacson, who writes an authorized biography of Elon Musk, the plans changed in May 2023. Musk explained that "Tesla engineering will need to be on the line to make it successful, and getting everyone to move to Mexico is never going to happen." This led to the decision to build next-generation cars and robotaxis in Austin, Texas, instead.

What does this mean?

This change is good news for Tesla, especially given the possible delays in the construction of the new factory in Mexico. It will also facilitate the replication of the new production process in other factories, including the future Gigafactory in Mexico. Tesla aims to produce 20 million vehicles per year by 2030, and any delay in bringing the new models to market could jeopardize this goal.

Future prospects

Elon Musk has spent the summer overseeing the design of the new workstations for the new production process. His own workplace and the workplaces of his top engineers will be located next to the new high-speed, ultra-automated assembly line.

Conclusion

Tesla's decision to move production of its next-generation electric cars to Texas is an important step that will likely accelerate the company's ambitious goals. It also demonstrates the company's flexibility and ability to quickly adapt to changing circumstances.