Tesla is rumored to be looking to invest in Nuevo Leon, a Mexican state bordering Texas, as CEO Elon Musk meets with the governor.

Earlier this year, people crossing the border between Texas and Nuevo Leon were surprised to see not just the usual marked lanes for cars and trucks but also one marked “Tesla” – pictured above.

We ended up finding out that Tesla had struck a deal with the state of Nuevo Leon to have its own lane at the border crossing in order to reduce wait times for cargo going through the border. Or at least that was the explanation of Ivan Rivas, the economy minister of Nuevo Leon.

While it’s true that Tesla has several suppliers in the state, as we reported at the time, we suspected that the move might have more to do with Tesla potentially investing in a factory in the state.

Earlier this year, we reported on CEO Elon Musk confirming that Tesla is considering sites for a new factory in Canada, Mexico, and the United States when discussing its next plant in North America.

Now Reuters has reported that Musk recently met with Nuevo Leon Governor Samuel Garcia, along with other local officials, and Ken Salazar, the US ambassador to Mexico.

According to a source talking to the publication, Tesla is interested in Santa Catarina, a municipality just outside of Monterrey, where many automotive companies, especially tier 1 and tier 2 suppliers are located.

It is located about 400 miles or a seven-hour drive from Tesla Gigafactory Texas in Austin.

The publication couldn’t say what Tesla would be investing into in the region, but as previously mentioned, Tesla has been considering Mexico for its next factory in North America.

Electrek’s Take

I know there have been a lot of indications that Canada might get the next Tesla Gigafactory. Not only could that still be the case, but I can certainly also see a scenario where everyone gets a new Tesla factory.

Based on Tesla’s plans, the automaker is going to need eight more Gigafactories by the end of the decade.

On top of that, the company has shown intentions to invest in other factories, like anode and cathode material production for batteries, to boost its supply chain. We expect several more of those projects to be announced soon.

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