EV giant Tesla (NASDAQ:TSLA) is expected to start the construction of its new Gigafactory in Mexico later this month, as per a Reuters report. As a result of which, the company may as well begin the production of its next-generation cars in the factory in 2024.
Tesla CEO Elon Musk announced its Mexico factory plans at the Investor Day event held last week. Though he remained discreet about the factory’s details, Musk said that it would be built just outside of Monterrey, Nuevo Leon, and produce vehicles based on its new vehicle platform.
Samuel Garcia, the Governor of Nuevo Leon, said that “they are waiting for the final permits,” on the successful application of which production can be started.
Another article from Electrek provided some more details about the Mexico factory. Tesla is said to have secured land spanning 4,200 acres for the factory, which is way above the 2,500 acres covered by its Texas Gigafactory. Also, Tesla is expected to invest about $5 billion in building the factory.
What is the Future of TSLA Stock?
Tesla has been benefiting from its strategy to cut prices in key markets as the company witnessed a massive surge in demand for its vehicles. In order to meet this growing demand, Tesla is investing heavily to expand its production capacity.
On TipRanks, TSLA stock has a Moderate Buy consensus rating based on 22 Buy, eight Hold, and three Sell recommendations. The average price target of $210.21 implies 8.5% upside potential from the current level.
