Leading electric vehicle (EV) maker Tesla (NASDAQ:TSLA) will build a new plant in Monterrey, the capital of the Northeastern state of Nuevo León, Mexico, the country’s President Andres Manuel Lopez Obrador announced on Tuesday. Tesla CEO Elon Musk is expected to provide more details about this plant at the Investor Day event scheduled to be held on Wednesday, March 1.
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“This will represent a considerable investment and many, many jobs,” President Obrador told reporters. He added that Musk acknowledged Mexico’s concerns about the water shortage in the region and has made commitments to address it. The president stated that Tesla agreed to use recycled water throughout the manufacturing process at the upcoming plant.
Tesla Continues to Expand Production Capacity
As per Reuters, Mexican deputy foreign minister Martha Delgado told Milenio Television that Tesla’s investment in the new plant would be “in excess of $5 billion.” He also said that the new plant will have the capacity to produce about one million vehicles annually, for both domestic and international markets.
Tesla has been aggressively investing in the expansion of its production capacity to address the growing demand for EVs. Outside of the U.S., the company currently has Gigafactories in China and Germany. The company has been adding production capacity at its factories in the U.S., China, and Germany.
Last year, Musk stated that Tesla will build at least 10 or 12 Gigafactories to achieve its goal of producing 20 million EVs annually by 2030. The company produced nearly 1.37 million EVs in 2022, up 47% from the prior year.
Is Tesla Stock a Good Buy?
Tesla shares have jumped 67% so far this year. The company delivered better-than-anticipated Q4 earnings despite supply chain bottlenecks and macro headwinds.
Wall Street’s Moderate Buy consensus rating for Tesla is based on 22 Buys, six Holds, and three Sells. The average TSLA stock price target of $204.96 indicates that the stock could be range-bound over the near term.
