Wed. Oct 4th, 2023
    Tesla’s Global Manufacturing Expansion Sparks Race for Investment

    Tesla’s plans to expand its manufacturing operations globally have prompted various countries to compete for CEO Elon Musk’s attention in order to secure substantial investment opportunities. Turkish President Tayyip Erdogan recently approached Musk, urging him to consider establishing a manufacturing plant in Turkey. Shortly after, the Wall Street Journal reported that Saudi Arabia was also in the early stages of discussions with Tesla to establish factories within the kingdom. Musk had previously mentioned that Tesla would likely choose a new factory location by the end of 2023.

    In its attempts to attract Tesla, Saudi Arabia has offered certain advantages, such as access to specific raw materials from countries including the Democratic Republic of Congo. Musk, however, denied these reports. On the other hand, Turkey’s communications directorate cited Musk as stating that the country stands as one of the top contenders for Tesla’s next factory location. Meanwhile, India has also shown interest in hosting a Tesla factory, with a focus on manufacturing low-cost electric vehicles (EVs) for both the local market and international exports.

    In terms of upcoming factories, Tesla is currently building a facility in Mexico’s northern border state of Nuevo Leon. A state governor in Mexico announced that Tesla, along with its suppliers, plans to invest $15 billion over the next two years, tripling the previously announced investment amount.

    Tesla currently operates several factories worldwide, including the main facility in Fremont, California, where the Model S, Model X, Model 3, and Model Y are produced. Other factories exist in Sparks, Nevada (producing the Tesla Semi, electric motors, batteries, and powertrains), Buffalo, New York (manufacturing solar roof, solar panels, and electrical components for superchargers), Shanghai, China (producing the Model 3 and Model Y), Grunheide, Germany (manufacturing the Model Y and battery cells), and Lathrop, California (capable of producing 10,000 Megapack units annually).

    The global race to secure Tesla’s investment highlights the attractiveness and potential economic benefits associated with hosting Tesla’s manufacturing operations. While talks and proposals continue to emerge, it remains to be seen which country will ultimately be chosen as the next host for Tesla’s expanding global manufacturing footprint.

    – Reuters