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Foxconn’s ~$900M AI plant in Mexico undeterred by Trump tariffs

The Taiwanese company is investing $900M into an assembly plant in Mexico that will produce AI servers powered by Nvidia’s GB200 chips.

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Foxconn plans to continue construction on its nearly $900 million AI plant in Mexico, undeterred by the impending tariffs from U.S. President Donald Trump.

Foxconn–a.k.a Hon Hai Precision Industry Co.–plans to build the world’s largest assembly plant for servers in El Salto, Jalisco. The servers will be powered by Nvidia Corp’s GB200 AI chips.

The Taiwanese company grew its server-related business in Mexico during Trump’s first run as U.S. President. This time, however, Trump’s 25% import tariffs on Canadian and Mexican goods are expected to affect businesses in each country.

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Trump’s import levies are predicted to increase the cost of doing business in Mexico for companies like Foxconn. However, the Asian company, as well as others, seem undeterred by Trump’s tariffs. According to the Governor of Jalisco, Pablo Lemus Navarro, Trump’s import levies won’t prevent new investments from coming to Mexico.

“What various plants have told us is that regardless of what happens with the tariffs announced by President Trump, they will continue working in Mexico. Not only have we not seen investments slow down, on the contrary, they continue to arrive in Jalisco,” Navarro told Bloomberg.

In Foxconn’s case, it is currently going through the permit process to start the construction of its new plant and upgrades to an existing one. Jalisco’s Secretary of Economic Development, Cindy Blanco, noted that the state government plans to provide fiscal incentives to support Foxconn’s project in the area.

Foxconn plans to expand its existing facility in El Salto first. Then it will build a new plant nearby. Navarro estimates construction will be finished in a year, and the new plant is expected to open by late 2025 or early 2026.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Elon Musk

Elon Musk outlines plan for first Starship tower catch attempt

Musk confirmed that Starship V3 Ship 1 (SN1) is headed for ground tests and expressed strong confidence in the updated vehicle design.

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Credit: SpaceX/X

Elon Musk has clarified when SpaceX will first attempt to catch Starship’s upper stage with its launch tower. The CEO’s update provides the clearest teaser yet for the spacecraft’s recovery roadmap.

Musk shared the details in recent posts on X. In his initial post, Musk confirmed that Starship V3 Ship 1 (SN1) is headed for ground tests and expressed strong confidence in the updated vehicle design.

“Starship V3 SN1 headed for ground tests. I am highly confident that the V3 design will achieve full reusability,” Musk wrote.

In a follow-up post, Musk addressed when SpaceX would attempt to catch the upper stage using the launch tower’s robotic arms. 

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“Should note that SpaceX will only try to catch the ship with the tower after two perfect soft landings in the ocean. The risk of the ship breaking up over land needs to be very low,” Musk clarified. 

His remarks suggest that SpaceX is deliberately reducing risk before attempting a tower catch of Starship’s upper stage. Such a milestone would mark a major step towards the full reuse of the Starship system.

SpaceX is currently targeting the first Starship V3 flight of 2026 this coming March. The spacecraft’s V3 iteration is widely viewed as a key milestone in SpaceX’s long-term strategy to make Starship fully reusable. 

Starship V3 features a number of key upgrades over its previous iterations. The vehicle is equipped with SpaceX’s Raptor V3 engines, which are designed to deliver significantly higher thrust than earlier versions while reducing cost and weight. 

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The V3 design is also expected to be optimized for manufacturability, a critical step if SpaceX intends to scale the spacecraft’s production toward frequent launches for Starlink, lunar missions, and eventually Mars. 

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Tesla FSD (Supervised) could be approved in the Netherlands next month: Musk

Musk shared the update during a recent interview at Giga Berlin.

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Credit: Tesla

Tesla CEO Elon Musk shared that Full Self-Driving (FSD) could receive regulatory approval in the Netherlands as soon as March 20, potentially marking a major step forward for Tesla’s advanced driver-assistance rollout in Europe.

Musk shared the update during a recent interview at Giga Berlin, noting that the date was provided by local authorities.

“Tesla has the most advanced real-world AI, and hopefully, it will be approved soon in Europe. We’re told by the authorities that March 20th, it’ll be approved in the Netherlands,’ what I was told,” Musk stated

“Hopefully, that date remains the same. But I think people in Europe are going to be pretty blown away by how good the Tesla car AI is in being able to drive.”

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Tesla’s FSD system relies on vision-based neural networks trained on real-world driving data, allowing vehicles to navigate using cameras and AI rather than traditional sensor-heavy solutions. 

The performance of FSD Supervised has so far been impressive. As per Tesla’s safety report, Full Self-Driving Supervised has already traveled 8.3 billion miles. So far, vehicles operating with FSD Supervised engaged recorded one major collision every 5,300,676 miles. 

In comparison, Teslas driven manually with Active Safety systems recorded one major collision every 2,175,763 miles, while Teslas driven manually without Active Safety recorded one major collision every 855,132 miles. The U.S. average during the same period was one major collision every 660,164 miles.

If approval is granted on March 20, the Netherlands could become the first European market to greenlight Tesla’s latest supervised FSD (Supervised) software under updated regulatory frameworks. Tesla has been working to secure expanded FSD access across Europe, where regulatory standards differ significantly from those in the United States. Approval in the Netherlands would likely serve as a foundation for broader EU adoption, though additional country-level clearances may still be required.

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Elon Musk estimates Tesla Semi could reach Europe next year

“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.

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Credit: Tesla

Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.

Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.

“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.

Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, it appears that a European rollout would be the next phase of the vehicle’s expansion beyond North America.

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Musk’s use of the word “hopefully” leaves room for flexibility, but the remark signals that Europe is next in Tesla’s commercial expansion plans.

Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.

The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets. 

Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.

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