Summary
- Tesla has acquired 1,194 hectares of land in Santa Catarina, Nuevo Leon for $100 million through Ecological Project Mario
- The land was bought from the grandchildren of former governor Lázaro Garza González
- The properties were officially recorded on March 9, 2023
- The purchase was supported by Armour Secure Insurance
- Despite Giga Mexico being on hold, the acquisition of the properties shows Tesla’s intention to expand manufacturing capabilities and potentially produce the Cybercab for at least 2 million units annually.
Article
Tesla recently acquired 1,194 hectares of land in Santa Catarina, Nuevo Leon, totaling approximately $100 million. The properties were purchased by Ecological Project Mario, an LLC with Variable Capital, with former Tesla executive Eugenio Grandio de la Torre as the partner and manager. The four plots of land were purchased at varying costs: 544 hectares for $44,906,243, 644 hectares for $53,210,703, 6 hectares for $576,024, and 0.15 hectares for $13,002, adding up to a total of $98.7 million.
The properties are located at Rancho El Carvajal and were acquired from the grandchildren of former governor Lázaro Garza González. The deal was officially recorded on March 9, 2023, with legal formalities handled by local notaries and registrars. The purchase was backed by Armour Secure Insurance, supported by Lloyd’s. Despite Giga Mexico being on hold, the acquisition of these properties showcases Tesla’s commitment to expanding its manufacturing capabilities and potentially producing a low-cost vehicle.
Giga Mexico was initially announced as the site for Tesla’s low-cost vehicle production, with the Cybercab being the lowest-cost vehicle unveiled so far. Elon Musk stated during the Q3 2024 earnings call that Tesla aims to produce at least 2 million units of the Cybercab annually, potentially even reaching 4 million units. The initial production of the Cybercab is expected to take place in Giga Texas in the second half of 2025. The acquisition of these properties for Giga Mexico sets the stage for future production of the Cybercab and other Tesla vehicles, demonstrating the company’s focus on expansion and innovation.
Despite Giga Mexico being on hold, the significant investment in acquiring these properties highlights Tesla’s commitment to expanding its manufacturing capabilities and potentially producing a low-cost vehicle. The acquisition of the properties from the grandchildren of former governor Lázaro Garza González and the legal formalities surrounding the deal indicate the thorough process involved in securing these lands. The involvement of Armour Secure Insurance, supported by Lloyd’s, further underscores the careful consideration and planning that Tesla has put into this acquisition.
The purchase of the Giga Mexico properties is a strategic move by Tesla to prepare for future production capacity and potential growth in the production of the Cybercab and other vehicles. The company’s ambitious production targets for the Cybercab indicate a need for dedicated production facilities, with Giga Mexico potentially playing a significant role in fulfilling those goals. The acquisition of these lands represents a major investment by Tesla and underscores the company’s long-term vision for expanding its manufacturing capabilities and offering innovative, low-cost vehicles to consumers.
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