Elon Musk: Tesla Is Considering Building Factories In Canada, Mexico

Tesla CEO Elon Musk reportedly said that Tesla's new factory may not necessarily be located in the United States, as the company is also considering building a new North American factory in Canada or Mexico.


Last week, a Tesla employee asked Elon Musk at an all-staff meeting where Tesla's next factory in the U.S. would be located. Elon Musk said Tesla has not made a decision yet, but he made it clear that it probably won't be in the United States. Elon Musk replied, "We are looking for a site for a new factory, but we are considering additional options in North America, including Canada, Mexico, and the United States."

Elon Musk's comments seem to indicate that Tesla is actively looking for a new site, but he also made it clear that Tesla's immediate priority in North America right now is to get the Texas mega-factory to mass production. Elon Musk mentioned at the conference that "the first priority is to get the Texas mega-factory to volume production, but that's difficult. While getting the Tesla Texas plant to volume production is more important than finding a new site, we are also looking for a new site."

He added, "It's always difficult to ramp up production of complex products like electric cars. While Tesla has a lot of experience in ramping up production, increasing production at the Texas plant will be particularly difficult. This is because the Texas plant produces the Model Y with a 4680 battery and a structural battery pack, and Tesla needs to increase production of both the 4680 battery and the Model Y."

Tesla has previously said that it aims to achieve mass production at the Texas mega-factory by the end of 2022. Elon Musk also said that Tesla could announce the site of a new factory by the end of this year.

Elon Musk did mention that Tesla would build a factory on or closer to the East Coast of the United States. But according to Elon Musk's answer at the all-staff meeting, the new factory is also likely to be located in Canada or Mexico. Canada has all the natural resources and qualified labor needed to produce batteries, making it a good site for Tesla's next mega-factory.

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John Murphy

John Murphy is the founder of TOPCARS Tesla Aftermarket Accessories, as well as an investor in Tesla and owner of the Model Y. He posts about Tesla news while running the site on a daily basis.

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