Tesla has paid about $100 million for Giga Mexico properties: report
12/31/2024 11:45 PM
A recent report has indicated that Tesla has acquired 1,194 hectares of land in four different plots in Santa Catarina, Nuevo Leon, for approximately $100 million.
The properties were acquired by Ecological Project Mario, an LLC with Variable Capital whose partner and manager was former Tesla executive Eugenio Grandio de la Torre, as noted in a Milenio report.
The Details:
- The plots of land and their costs:
- Plot 1: 544 hectares for $44,906,243.
- Plot 2: 644 hectares for $53,210,703.
- Plot 3: 6 hectares for $576,024.
- Plot 4: 0.15 hectares for $13,002.
- Overall, Tesla had spent about $98.7 million dollars for its four Giga Mexico properties.
Ownership and Legalities:
- The properties are located at Rancho El Carvajal, and they were bought from the grandchildren of former governor Lázaro Garza González.
- The deal was officially recorded on March 9, 2023, with necessary legal formalities handled by local notaries and registrars.
- The purchase was backed by Armour Secure Insurance, which, in turn, is supported by Lloyd’s.
Why It Matters:
- Despite Giga Mexico being on hold, the acquisition of the properties is still a substantial investment for Tesla. It also highlights the company's intentions to expand its manufacturing capabilities.
- Giga Mexico was initially announced as the site where Tesla would produce a low-cost vehicle.
- So far, the lowest-cost vehicle that Tesla has unveiled is its autonomous robotaxi, the Cybercab, which was unveiled during the We, Robot event back in October.
- The Cybercab, however, is expected to see its initial production in Giga Texas sometime in the second half of 2025.
- That being said, Elon Musk stated during the Q3 2024 earnings call that Tesla is aiming for Cybercab production to hit at least 2 million units per year, or potentially even 4 million units annually.
- Such volumes could require a dedicated production facility for the Cybercab.
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