Will problems at the Mexico gigafactory delay the Tesla Model 2?

The story of the Tesla factory in Mexico is starting in a more tortuous way than expected. After the chaos generated between the company and the Mexican Government to confirm its location, it was finally Tesla itself that made the official announcement in March of this year. But, problems have not stopped arising. Now, as local sources report, the plant will take much longer than expected to begin operations. A significant delay, currently unjustified, will cause the plans to be delayed much longer than imagined. And not only in Mexico.

The new gigafactory, the third abroad after Shanghai and Berlin, is being slowly built in the northern part of Mexico, more specifically in the State of Nuevo León, on the outskirts of the town of Monterrey, the capital of the province. It is a fairly inhospitable area and is barely 600 kilometers away from the company’s headquarters in Austin, Texas. The enclave was selected, among other reasons, due to its proximity to the border and the generous space offered for possible expansions.

From the beginning, Tesla has wanted its new plant to become the jewel in the crown. A factory capable of imposing a new and revolutionary manufacturing format. Elon Musk wants to reinvent Henry Ford’s system, widespread in the industry since the beginning of the 20th century. The objective has always been to manufacture 3.5 million units in the Mexican plant. For now, there is no official confirmation about which car will be assembled at the facilities, everything points to the Tesla Model 2, but what we do know is that this will arrive much later than expected.

Tesla Model 2

Although the company did not set specific deadlines, rapid construction was expected. However, problems and a miscalculation have caused delays in the plans. As reported by Reforma, a local media outlet, Tesla is warning its suppliers not to be in a hurry to meet the demands, the project is going to take a long time. New estimates indicate that activity at the plant will not begin until late 2026 or early 2027. “Two or three months ago there was a lot of hurry, a lot of pressure to find a location. But a month later they told us to wait,” the source told the aforementioned media.

On the other side of the world, in Indonesia, problems also seem to arise for Tesla. Elon Musk has long been interested in the country. With enormous commercial potential, the region is well located and, most importantly, has a cheap and accessible workforce. The conversations pointed to a rapprochement with the Government, but now, as Bloomberg indicates, Tesla is no longer interested in building a factory in the country. Luhut Pandjaitan, Indonesia’s Investment Minister, says Musk is concerned about the global economic outlook and oversupply in the electric car industry.

Lynda Reeder

I'm Lynda, I currently own Tesla. I write about electric cars. My aim is to provide information on how technology can improve the ownership experience of electric vehicles.

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