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How a Six Flags licensing issue let Tesla snag Giga Mexico land

(Credit: Tesla)

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Tesla landed on a large plot of land in Santa Catarina, Mexico, in the State of Nuevo Leon, for its first Gigafactory in the country. However, the property was almost a Six Flags amusement park well before Tesla had even thought about Mexico, before it had built a Model 3, and before it was even financially stable.

In 2015, Six Flags Senior VP of International Operations John Odum met with government officials to discuss a potential theme park in Mexico.

While Six Flags has a location several hours away in Mexico City, it mulled the potential of a separate location in Nuevo Leon, and the land where Tesla will build its next factory was the most ideal location.

Six Flags wanted to build the park and needed what every large-scale project would need: water, public services, electricity, and gas.

The company was ready to spend $400 million to develop the park and create jobs. Construction was expected to take three years, according to a report fromΒ infobae.

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Negotiations had cooled down for two years until 2017 when the then mayor of Santa Catarina, HΓ©ctor Castillo Olivares, said Six Flags was still interested in the land, but the company was dealing with licensing issues, and they may have felt a new park would have been better positioned elsewhere.

The land sat vacant with no plans for development for over five years until an October 2022 helicopter flyover with Tesla CEO Elon Musk helped bring potential to the land.

Eventually, Tesla committed fully and plans to build on the property.

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Interestingly, plans for Tesla could have fallen through for different reasons. Musk reportedly communicated with local authorities that Tesla would require certain amounts of water, electricity, and other things to maintain stable operations.

Meanwhile, Mexican President Andres Manuel Lopez Obrador said if there was a water supply shortage in the area, he would not allow Tesla to gain permits for construction. β€œIf there’s water, no. Simply put, we don’t give out permits for that,” he said. “It’s not feasible.”

However, things eventually got sorted out, and Tesla plans to build its largest factory yet on the land where a Six Flags amusement park once almost landed.

Construction is set to begin later this year, and the first vehicles could roll off the production lines as soon as early 2024.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me atΒ joey@teslarati.com. You can also reach me on TwitterΒ @KlenderJoey, or if you have news tips, you can email us atΒ tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

SpaceX announces new Starbase for ‘thousands of Starship launches annually’

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Credit: SpaceX

SpaceX announced today that it would expand its launch capabilities into a new U.S. state: Louisiana.

Today, SpaceX, in conjunction with the Louisiana Economic Development Office, said that it will establish a new launch facility, which it will call Starbase, Louisiana. It will be located near Vermilion Parish, supporting thousands of launches each year, at least eventually.

CEO Elon Musk commented by stating, “Starbase Louisiana will ultimately have over a dozen launch towers, enabling more than 30 Starship flights per day and making it the biggest launch site on Earth!”

The expansion is SpaceX’s latest move to push its launch cadence to be more frequent than ever. SpaceX said that Starbase, Louisiana, will be built to “support thousands of Starship flights a year,” with the first coming in 2029.

SpaceX announced the new facility in partnership with the Louisiana Economic Development Office as it will bring a major influx of jobs and investments into the area. Currently, it will produce more than 3,000 new jobs in Louisiana, and SpaceX plans to invest at least $100 billion into the entire facility, ensuring that many jobs are created as a result.

Environmental Responsibility

SpaceX acknowledges the impact launches could have on marshlands, local wildlife, and water sources. Here’s how the company plans to help with the issues in Vermilion Parish:

  • Restoring the Shoreline: “In Vermilion Parish, the shoreline is eroding between 3.3 and 23 feet per year. We’re partnering with state and federal agencies to expand Louisiana’s Coastal Master Plan and Coastal Wetlands Planning, Protection and Restoration Act projects, including Gulf shoreline protection breakwaters designed to reduce wave energy and slow loss along the Gulf edge.”
  • Rebuilding the Marshlands: “In working with the state, we’re planning thousands of acres of marsh creation using beneficial-use placement of dredged material and offshore sediment sources. Restoration will also include interior marsh bank stabilization and rebuilding marsh in remnant canals. These projects can reconnect fragmented wetlands, restore natural buffers against storms, and return habitat that has been lost to erosion and historic canalization.”
  • Preserving Coastal Wildlife: “Pecan Island and nearby wetlands are high-value habitat for migratory waterfowl, shorebirds, wading birds, and other coastal wildlife. SpaceX is not developing the full footprint of the land and will preserve wetlands and wildlife habitat. At existing launch sites, waterfowl and other birds continue to use nearby habitat during operations. Working with wildlife agencies, landowners, and conservation groups, SpaceX will support monitoring and management so this habitat stays productive and hunting, fishing, birding, and other recreational activities that are part of this coast’s culture can continue.”

SpaceX shares rose about 2.5 percent on the news.

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Cybertruck

Tesla just made Cybertruck more expensive

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Credit: Tesla

Tesla Cybertruck trims saw a big price change, at least on two of the three available to consumers, as demand for the all-electric pickup appears to be increasing.

Tesla bumped up its Base All-Wheel-Drive trim level up to $74,990 from $69,990 and the Premium All-Wheel-Drive configuration from $79,990 to $84,990. The Cyberbeast price remains unchanged at $99,990.

Despite questions of demand for the truck, Tesla is bumping its two least expensive trims up $5,000 to signal that there are plenty of buyers. Although SpaceX has been buying Tesla Cybertruck units to utilize as company vehicles, it is no secret that the Cybertruck is among the most sought-after Tesla models out there.

The issue has always been pricing, at least for the most part. When Tesla initially launched the Cybertruck AWD at $59,990 a few months back, the company stated that price would remain intact for just ten days due to the influx of orders it received.

Cybertruck Sales: Is It the Product or Pricing?

Depending on who you ask, you will likely hear one of two explanations for relatively low Cybertruck sales: either the product itself or the pricing.

Yes, this is the best-selling all-electric pickup on the market. However, there are people who simply hate the look of it, which I understand, but do not agree with. Look is totally subjective, and I love the look of the Cybertruck.

Some people will not buy the Cybertruck because of the look, but I am under the impression that sales would be much better if this truck were priced lower; something that might not be possible considering Tesla’s need to make money on its products. When it was unveiled in 2019, its most expensive trim level was $69,990. Now, the cheapest trim level is more expensive than that.

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I would be in a Cybertruck if it were more affordable. I LOVE my Model Y, but Cybertruck is the best vehicle Tesla makes, and it’s not particularly close. Even in the base model, the steer-by-wire, the space, storage, and performance make it more desirable than the Model Y to me. I cannot be the only Tesla owner without a Cybertruck who feels this way.

If you’re interested in buying a Tesla vehicle, use my referral link.

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Energy

Tesla Semi factory is getting a celebration nobody expected

Tesla will inaugurate its Nevada Semi factory September 24, five months after production quietly began ramping.

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Tesla says it will officially inaugurate its new Semi factory in Nevada next month. The Tesla Semi account posted the announcement on X, sharing a graphic titled “Semi Rollout” with a date of September 24. No further details were given about the format of the event or who would attend.

While Tesla’s dedicated Semi plant in Sparks, adjacent to Gigafactory Nevada, opened back in April, with the first trucks rolling off the high volume line on April 29, the timing for the factory inauguration comes at a surprise. The ribbon cutting event five months into production is a break from how Tesla has usually handled its other factories, where the first truck or car off the line typically served as the milestone moment.

The 1.7 million square foot factory was built as part of a $3.6 billion expansion Tesla announced in early 2023, and it shares a site with the battery cell lines that feed the Semi’s structural pack, a decision meant to remove the supply bottleneck that delayed the truck for years. The plant is designed for 50,000 trucks a year at full ramp. Semi program director Dan Priestley has said production “is now ramping” rather than claiming it has reached scale.

Nine years passed between the Semi’s 2017 unveiling and this stage of production, with the truck slipping from an original 2019 target through hand built pilot units for PepsiCo and a slow build out of the Nevada plant. An inauguration event now gives Tesla a stage to talk up that ramp and reset expectations for how many trucks it can begin delivering at scale.

The September date also lines up with the Semi’s next milestone. Tesla confirmed the truck is heading to Europe with a full unveiling at the IAA Transportation trade show in Hannover, Germany, running September 15 through 20. Between the Nevada event and the Hannover reveal, Tesla has roughly a week and a half in September to make the case that the Semi is now a truck being built and sold on two continents rather than tested in a handful of fleets.

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