Tesla's Next-Gen Electric Cars to Build in Texas, Not Mexico

Elon Musk’s Tesla has decided to move manufacturing of its next-generation electric vehicles to Giga Texas rather than Giga Mexico. This strategic shift represents Tesla’s unshakable commitment to bringing a ground-breaking robotaxi and an accessible $25,000 electric vehicle to market. It goes beyond simply moving manufacturing. It significantly impacts the future of electric cars and the automotive industry overall.

The Idea of the Robotaxi

In November 2021, Elon Musk met with his top engineers in Austin, Texas, to discuss Robotaxi’s future. They concluded the car should put affordability and large manufacturing volume ahead of sheer speed and luxury at this meeting. Musk stated, “Volume has to be our main focus.” His enormous goal of 20 million automobiles produced annually, which may drastically alter the automotive industry, was mentioned.

Elon Musk has long envisioned a world in which vehicles can transport people to their destinations on their own, ushering in a new era of mobility. Tesla is working to equip its cars with Full Self-Driving (FSD) capabilities to accomplish this objective. FSD wants to completely automate Tesla vehicles, doing away with the need for steering wheels, pedals, and mirrors. Musk’s desire to push the limits of automation and technology has inspired him to set the bold ambition of building a “clean Robotaxi.”

Von Holzhausen gave Musk side-by-side models of a robotaxi and a $25,000 automobile in February 2023. He was won over by the futuristic Cybertruck vibe that both shared. He predicted that when one of them appeared around a corner, people would believe they were witnessing a vision from the future.

The Shift to Giga Texas for Electric Vehicles

Initially, Tesla planned to build its next-gen vehicles in Giga, Mexico, a location strategically chosen to benefit from proximity to the U.S. market and lower production costs. The plan implied the use of highly automated production techniques. However, a significant problem arose: Tesla’s finest engineers refused to move to Mexico, making it difficult to guarantee the success of this enormous project.

A Change in Plans

Elon Musk made the decision to move the next-generation vehicle assembly to Giga, Texas, Austin, in May 2023. The presence of Musk and his top engineering expertise in the region had an impact on this choice. The entire production process was improved throughout the summer of 2023. They dedicated the summer of 2023 to refining every aspect of the production process. Their goal was to optimize efficiency at every station on the assembly line, saving precious milliseconds in each step.

Implications of the Decision

This shift from Giga Mexico to Giga Texas is reassuring news for electric cars, especially considering potential delays in building the new plant in Mexico. Tesla’s next-gen electric vehicles, including the affordable $25,000 model, are poised to be the first to benefit from this innovative production process. The game-changing robotaxi is also part of this pioneering endeavor. The decision supports Tesla’s ambitious plan to produce 20 million electric vehicles annually by 2030, an aim that could fundamentally alter the automotive sector.

Tesla wants to make an electric car that changes history and how we travel. They want to make electric cars that can drive independently. Tesla wants to make an electric car that changes history and how we travel. While the shift from Giga Mexico to Giga Texas signifies a change in plans, it bodes well for Tesla’s future ambitions and realizing its electric car dream.