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Mexico says Tesla never registered crucial investment application for Gigafactory

Credit: Tesla

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Mexico says Tesla never registered a crucial investment application for its planned Gigafactory.

Tesla originally announced its plans to open a new Gigafactory that would produce its electric vehicles in Mexico last year. However, various things, including tumultuous economic conditions and political uncertainty, delayed the construction of the factory, which was coined Gigafactory Mexico and was set to be built in Nuevo Leon.

In October 2023, CEO Elon Musk raised concerns about economic conditions as it planned to build the factory:

“I’m worried about the high-interest rate environment that we’re in. I just can’t emphasize this enough that the vast majority of people buying a car is about the monthly payment…If you can tell me what the interest rates are, I can tell you when we should build the factory.”

Musk did not feel that demand would be high enough to justify the new factory at that time, but things are not really changing, as he highlighted more concern about the political climate during last week’s Earnings Call:

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“We’re currently on pause on Giga Mexico. I think we need to see just where things stand after the election…Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So we will kind of need to see how things play out politically.”

Tesla’s next North American Gigafactory ‘paused’ as U.S. election nears

However, a new report from Mexico Now states that Mexican government officials said Tesla never registered a Foreign Direct Investment (FDI), which would be typical for a foreign company planning to build a presence in the country.

Raquel Buenrostro, the Secretary of the Economy, said:

“We have no record of Tesla’s investment…They have made announcements in the media, but they have not made any official, institutional arrangements, in accordance with the Law of Foreign Direct Investment in Mexico.”

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She went on to confirm that Tesla’s “pause” in investment has not been matched by other companies just because of a potential Trump presidency:

“You have seen that it doesn’t; we have announcements, historic announcements, and also the records have been historic: in the first quarter, we had $20 billion in FDI, which is 50 percent more than what we had last year. Investment is going very well.”

Tesla did not cancel the plans for Giga Mexico, but it seems the construction will be on pause for a considerable amount of time. If Trump wins the presidency, we could see the entire project take a major turn.

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

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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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Tesla Megapacks powers the xAI Colossus supercomputer

Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.

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(Credit: Tesla Megapack)

Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.

The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.

“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.

“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.

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xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.

The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.

Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.

As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.

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SpaceX’s Starlink Router Mini targets home Wi-Fi dead zones for $40

The Starlink Router Mini tackles home Wi-Fi dead zones for just $40. Compact & mesh-compatible, it’s built for basic setups.

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SpaceX’s Starlink Router Mini recently launched to enhance home Wi-Fi connectivity by addressing dead zones at home, offering a budget-friendly option for customers. The Starlink Router Mini is a $40 mesh-compatible device.

The Router Mini targets users seeking affordable solutions to extend coverage in smaller spaces. SpaceX describes the new Starlink router as a lower-performance device suited for “basic Wi-Fi needs” in compact setups.

“It works well in most basic residential setups and is a good option for extending coverage. However, in homes where rooms have multiple barriers between them (mirrors, multiple walls, brick or stone walls), you may notice a drop in performance unless you use wired connections,” the company noted.

In contrast, the Gen 3 router, now priced at $120 after dropping from $199, delivers stronger performance for larger homes with multiple devices. The Router Mini complements the Gen 3 router, which comes bundled with the standard Starlink dish and supports mesh networking.

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“If you need simple, reliable Wi-Fi and want to keep costs down, the Router Mini is a solid option. But if you’re looking for stronger, more consistent performance across a larger or busier home, the Gen 3 Router is the way to go,” SpaceX explained.

Both routers support Wi-Fi 6 speeds and can operate in wired or wireless mesh modes, though the dual-band Starlink Router Mini has fewer antennas (“2×2 2.4 GHz, 2×3 5 GHz MU-MIMO”) compared to the tri-band Gen 3’s four-plus antenna setup.

The Router Mini’s debut follows its appearance in an FCC filing and a Starlink app update referencing a “mini mesh” device. It also connects to the Starlink Mini dish, boosting its limited Wi-Fi range. The device’s affordability and mesh compatibility make it an attractive option for customers looking to optimize their Starlink setup without investing in additional Gen 3 routers.

As Starlink continues to expand its global broadband network, the Router Mini addresses growing demand for flexible, cost-effective home connectivity solutions. By offering a cheaper mesh device, SpaceX strengthens its ecosystem, catering to diverse user needs while maintaining its lead in satellite internet innovation.

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Tesla flexes its self-driving muscles through Li Auto CEO’s latest comments

Tesla got a few compliments from Li Auto’s CEO about its prowess with Full Self-Driving.

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Credit: @Tslachan/X

Tesla is flexing its self-driving muscles through an unlikely source, as Li Auto CEO Li Xiang gave the company tremendous credit for its ability to continue improving upon its Full Self-Driving suite.

Xiang spoke at Li Auto’s in-house AI Talk series, giving Tesla Full Self-Driving some impressive kudos, considering the company’s prowess in the autonomy sector and its focus on the simple things.

These comments reflect the latest performance of the FSD suite in China, and not the more robust version in the United States, which has been wildly impressive since the release of Hardware 4 with certain vehicles, especially the new Model Y.

Li said (via Eletric-Vehicles):

“The performance after FSD 13.0 is still very strong. What we can see is that Tesla’s fundamentals are very solid. In the AI era, mastering the fundamentals is essential and cannot be skipped.”

The rollout of Full Self-Driving in China has been impressive, with recent accomplishments even showing vehicles traveling throughout some of the toughest conditions in terms of traffic and terrain.

Just this past weekend, one Tesla managed to make it to the base camp of Mount Everest, a tremendously difficult feat considering the potholes and unpredictable terrain that lay ahead.

Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp

Tesla worked for months to roll out a version of Full Self-Driving in China earlier this year.

With the release of what it referred to as “City Autopilot,” it gave owners in the largest automotive market in the world the opportunity to experience semi-autonomous driving technology, something that the company hopes to bring to other regions, most notably Europe, later this year.

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