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Giga Mexico Time To Build
Tom Zhu is the head of Tesla's U.S. assembly plants and sales operations in North America and Europe told the Governor of Nuevo León in Mexico, the location where Giga Mexico will be built, that he wants to see that giga factory break the record of being built in 9 months by Giga Shanghai.
Tom Zhu is a very important person at Tesla. He helped get Giga Shanghai built and running at record speed, and he knows a lot about how mass production works. Getting a vehicle to volume production is no easy task, and all the experience Tom has gained is going to be very valuable for Giga Mexico AND future factories.
This a one two punch that isn't unlike the one two punch that Apple had at one time with Steve Jobs and Tim Cook. Jobs and Elon Musk are the visionaries, and Cook and Zhu as the masters of logistics and mass production. I see Tom Zhu potentially taking over as Tesla CEO when Elon Musk steps down.
If Giga Mexico breaks ground in a few months, then I see it getting built by the end of March 2024, and first deliveries happening soon after that. The nice thing about Giga Mexico is that there doesn't appear to be the red tape that Giga Berlin had.
Look for progress to happen rapidly at Giga Mexico, and for it to have much more output than all of Tesla's current Giga factories run rate in 2023 combined at some point in the future. I see greater than 2 million vehicles per year coming out of this factory.
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What Will Be Built at Giga Mexico?
What vehicles will be built in Giga Mexico? Tesla executives have said that the next generation of Tesla vehicles will be built there. Those vehicles will also eventually be built in Giga Texas and Giga Berlin. The compact car is meant for the entire world, not just South America.
Tesla's current giga factories that build the Model 3 and Model Y will probably be the last factories to build those vehicles as they are keeping up with the demand. New factories are going to build the next generation of Tesla's vehicles.
I think we have two vehicles that Giga Mexico is going to build. The first is going to be a van. That's right, a van. It's going to be a large and simple vehicle that can seat multiple people. These vans will be excellent for transporting people, but I think there will be versions of the van available that don't have any seats for people who want to live in the Tesla Van.
The second vehicle will, of course, be Tesla's Compact car, which will be sold anywhere from $20,000 to $25,000. This will be affordable to most of South America and Tesla will be able to start gathering data on the South American roads. This will further FSD beta and Tesla's lead in autonomy.
Do you think any other vehicles will be built at Giga Mexico? If so, what do you think they will be?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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