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Tesla (TSLA) to Make $15B Investment in Mexican Gigafactory (Revised)
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Tesla (TSLA - Free Report) and its suppliers are set to invest $15 billion in a Gigafactory in Mexico over the next two years, said Nuevo Leon Governor Samuel Garcia. The amount is three times greater than the figure reported previously by Mexican officials.
In March, Elon Musk, CEO of Tesla, said that the company plans to open a gigafactory in northern Nuevo Leon state to expand its global footprint.
At that time, Musk did not disclose the investment amount, but Mexican officials said the factory would require nearly $5 billion in investment.
Per Reuters, Tesla and its suppliers will generate an investment of $15 billion in two years, said Garcia. He added that this amount will require the state to spend more on projects such as highways and other public works.
Tesla hasn’t yet disclosed the starting date of the Gigafactory’s construction or the start of vehicle production in the same factory. Per one of Reuters’ previous reports, the automaker has plans to start electric vehicle production in Mexico in 2025.
Per the previous report, Tesla’s $25,000 electric car and the robotaxi were supposed to be built on a next-generation platform. The platform was supposed to make its debut at Gigafactory Mexico, but that looks unlikely.
Per Walter Isaacson's recently released biography of Elon Musk, the company has now decided to shift the next-generation electric vehicle’s (EV) initial build location from Mexico to Austin, TX. Therefore, development and initial production will now take place at the Texas Gigafactory.
The main reason behind this shift in location is the engineers’ unwillingness to relocate to a neighboring country to develop a manufacturing line while they need to be on the line to make it successful.
Before Tesla’s announcement, legacy automakers BMW, General Motors and Ford announced plans to start or step up EV production in Mexico as the industry transitions away from fuel-powered vehicles.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 and 2024 has moved north by 23 cents and 18 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimates for 2023 and 2024 have moved up by 9 cents each in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 39 cents and 43 cents, respectively, in the past 60 days.
(We are reissuing this article to correct a mistake. The original article, issued on September 13, 2023, should no longer be relied upon.)
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Tesla (TSLA) to Make $15B Investment in Mexican Gigafactory (Revised)
Tesla (TSLA - Free Report) and its suppliers are set to invest $15 billion in a Gigafactory in Mexico over the next two years, said Nuevo Leon Governor Samuel Garcia. The amount is three times greater than the figure reported previously by Mexican officials.
In March, Elon Musk, CEO of Tesla, said that the company plans to open a gigafactory in northern Nuevo Leon state to expand its global footprint.
At that time, Musk did not disclose the investment amount, but Mexican officials said the factory would require nearly $5 billion in investment.
Per Reuters, Tesla and its suppliers will generate an investment of $15 billion in two years, said Garcia. He added that this amount will require the state to spend more on projects such as highways and other public works.
Tesla hasn’t yet disclosed the starting date of the Gigafactory’s construction or the start of vehicle production in the same factory. Per one of Reuters’ previous reports, the automaker has plans to start electric vehicle production in Mexico in 2025.
Per the previous report, Tesla’s $25,000 electric car and the robotaxi were supposed to be built on a next-generation platform. The platform was supposed to make its debut at Gigafactory Mexico, but that looks unlikely.
Per Walter Isaacson's recently released biography of Elon Musk, the company has now decided to shift the next-generation electric vehicle’s (EV) initial build location from Mexico to Austin, TX. Therefore, development and initial production will now take place at the Texas Gigafactory.
The main reason behind this shift in location is the engineers’ unwillingness to relocate to a neighboring country to develop a manufacturing line while they need to be on the line to make it successful.
Before Tesla’s announcement, legacy automakers BMW, General Motors and Ford announced plans to start or step up EV production in Mexico as the industry transitions away from fuel-powered vehicles.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) , Gentex Corporation (GNTX - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 and 2024 has moved north by 23 cents and 18 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimates for 2023 and 2024 have moved up by 9 cents each in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 39 cents and 43 cents, respectively, in the past 60 days.
(We are reissuing this article to correct a mistake. The original article, issued on September 13, 2023, should no longer be relied upon.)