Tesla (NASDAQ: TSLA) Stock Jumps as Giga Mexico Construction Set to Begin

Tesla (NASDAQ: TSLA) stock jumped after Nuevo León Governor confirmed construction start for Giga Mexico next week.

Nuevo León Governor Samuel García Sepúlveda has confirmed that the construction of Tesla Inc.’s (TSLA) Gigafactory in Mexico will begin next week. The groundbreaking ceremony for the factory is scheduled for March 3, as reported by Teslarati, citing information from the Mexican publication Milenio.

The factory’s construction was delayed due to environmental permitting issues; however, groundwork has already commenced.

Governor García Sepúlveda expressed his enthusiasm for the forthcoming Tesla factory and highlighted its potential positive impact on the local community.

García Sepúlveda said,

“See you also from this Sunday to the other in Terralta, because we started the construction of Tesla.”

He added,

“Tesla starts next Sunday, there will come a lot of investment, a lot of development, a lot of spillover.”

CEO Elon Musk indicated that the factory will primarily focus on producing Tesla’s next-generation, lower-cost electric vehicle, expected to roll out by the second half of 2025.

This move aligns with Tesla’s broader expansion strategy. It comes amidst reports of Chinese electric vehicle maker BYD Co considering establishing a new production facility in the country to bolster its presence in the U.S. market.

Earlier reports from December 2023 suggested that Tesla could construct the Gigafactory Mexico in record time. The factory will manufacture Tesla’s Model Y, batteries, and the Cybertruck.

Tesla (NASDAQ: TSLA) Stock Performance

TSLA stock surged 3.87% to close at $199.40 on Monday. The traders had exchanged hands with 111,441,087 (111.44 million) shares compared to the average daily trading volume of 110.44 million.