Tesla will open a new gigafactory in Mexico's northern border state of Nuevo Leon
EsperJohnathan/Twitter (Edited by Not a Tesla App)
Elon Musk announced at the recent Investor Day that Tesla will open a new gigafactory in Mexico's northern border state of Nuevo Leon. The factory, which is expected to be the world's largest electric vehicle plant, will be worth over $5 billion and will supplement the output of Tesla's other factories. While it’s a big win for Mexico, Canada, which was also rumored to be in the running, has been left out in the cold.
The announcement comes after months of speculation and phone calls between Musk and Mexican President Andres Manuel Lopez Obrador, including a one-hour call the night before the Investor Day event. The new gigafactory in Mexico is expected to create up to 6,000 jobs in Nuevo Leon, and Tesla is considering producing batteries in the country. According to senior officials, Musk is also interested in further investment in Mexico.
Musk has hinted at Canada
At a shareholder meeting in August 2022, Musk asked the crowd where the next gigafactory should be built; he then said, "We get a lot of Canada. I am half-Canadian. Maybe I should?"
A recent email to owners highlighted the company’s positive impact on Canada's economy. Tesla's total contribution to Canadian GDP in 2021 was $762 million, and the company provided 6,645 full-time jobs in the country, including 3,100 direct jobs, due to its operations and spending. The direct employment impact is equivalent to 3% of all jobs in the auto parts manufacturing sector.
Mexico is a Hot Spot for EVs
Perhaps the letter was intended to soften the blow when Tesla decided to go with Mexico. Nuevo Leon has many advantages for its plant due to its proximity to Austin, where Tesla has its headquarters. This will be Tesla's third factory outside of the US, after the firm recently opened plants in China and Germany. Tesla's announcement comes just a few weeks after BMW said it would be investing in a factory in Mexico. Ford also manufactures its electric SUV in the country.
While Canada missed out this time, Tesla plans to have 10-12 gigafactories worldwide. When it breaks ground in three months, the company will reveal what vehicles it will produce at the Nuevo Leon factory. Musk said there would be an official ground-breaking event at that time.
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It has been a long wait for FSD for European customers, many of whom paid for the feature years ago on now legacy hardware. While the FSD transfer program has come and gone multiple times, there’s something to be said about having it available in North America, where it can be used, and in Europe or other countries, where it still just remains the same as Enhanced Autopilot (differences between Autopilot, EAP, and FSD).
FSD Transfer is a nice goodwill gesture from Tesla that in theory doesn’t cost them anything. Instead, it keeps customers, especially those who have been waiting for years, loyal and happy. It also incentivizes them to upgrade to a newer Tesla with HW4, where FSD will hopefully be achieved.
In a reply to a post on X, Elon agreed with the suggestion that offering FSD transfers in Europe would be a fair solution for those who have already purchased FSD but can’t use its capabilities.
FSD Transfer directly addresses a growing concern for many long-term European Tesla owners. Thousands of customers purchased the full package, often many years ago, with the expectation that FSD would eventually be capable and approved for use. However, the reality is that FSD, even as an advanced driver assistance system (ADAS), continues to be pushed back in Europe.
Without the transfer program, it's a difficult choice: either throw away your original investment in FSD and pay for the package a second time (FSD price history), or subscribe to it in the future.
Offering FSD transfers is a good way for Tesla to meet them halfway. It's a difficult situation, and one that’s being hindered by processes beyond the control of both the customer and Tesla. However, a transfer helps both parties. Tesla sells another vehicle, and the customer gets to keep FSD.
When Will it Be Available?
Based on how FSD transfers have worked in the past following Elon’s announcements, this feature is likely to become available for a limited time period in the coming days or weeks. If it happens, we should expect an announcement from Tesla Europe on X and emails being sent out to Tesla customers.
Once the program is in place, all you need to do is complete your vehicle purchase and then inform your Tesla sales advisor that you’d like to transfer FSD. You don’t even have to sell or trade in your old Tesla; FSD will simply be removed from it as a feature.
Hopefully, Tesla enables FSD Transfers for everyone, regardless of region. It should be an ongoing offer until at least FSD is approved in the given country or region.
The introductory price for Tesla’s Robotaxi Network has finally been updated. In a post on X, Elon Musk confirmed that the new fare would be rolling out to complement the new Robotaxi geofence expansion.
This change marks the first adjustment to Tesla’s fares since the initial $4.20 launch price 23 days ago. While the price increase may seem significant in terms of percentages, when compared to other options in the ride-hailing area, it is still drastically cheaper.
But the price is now a princely $6.90, as foretold in the prophecy 😂
Robotaxi currently operates on a simple, flat-rate model. The new $6.90 fare gets you a ride to anywhere within the recently expanded geofence.
So far, this is the opposite approach compared to other services, such as Waymo or traditional ride-sharing options like Uber and Lyft. All these services use dynamic pricing based on distance, time of day, and demand. A comparable trip on any one of these services could cost anywhere from $30 to $65, and potentially even higher during peak hours.
That doesn’t even include the tip fees for human drivers either - another win for Robotaxi (can you tip a Robotaxi?).
Even with the adjustment, the flat $6.90 fare remains less than half the price of a typical competing ride, making Robotaxi the most affordable point-to-point transportation option in Austin, aside from mass transit, for now.
A “Maturing” Service
The price change, moving from one meme-worthy number to another, is a sign that Robotaxi is finally graduating from its initial pilot phase. Following the first major expansion of the service area, this adjustment is a logical next step towards finding a more sustainable flat price.
While the new fare is a 65% increase over the old fare, the key takeaway is that it is still far cheaper than other options, and still just as meme-worthy. Tesla is aiming to have its early access riders complete as many rides as possible during these early months, and this pricing is still very reflective of that.
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