Tesla Gigafactory Mexico will build the company’s next-generation vehicle. During Investor Day 2023, Elon Musk confirmed Gigafactory Mexico’s location and Tesla’s plans for the new production facility.
Just a day before Investor Day 2023, Mexico’s President Andrès Manuel Lopez Obrador announced Tesla’s new gigafactory location in Monterrey.
“There is already an understanding, yes [Tesla is] going to dedicate the investment to Mexico, and the plant is going to be established in Monterrey with a series of commitments to face the problem of water scarcity,” said President Obrador during his press conference.
Elon Musk confirmed Obrador’s news during Investor Day. The Tesla CEO elaborated that Gigafactory Mexico will focus on building the company’s next-gen vehicle. Tesla adopted a similar strategy for Giga Texas, also known as the company’s Cybertruck factory. While Giga Mexico may focus on Tesla’s next-gen vehicle, it may also build other cars. Giga Texas, for example, also produces Tesla Model Y vehicles.
Tesla’s Next-Gen Vehicle
During Investor Day 2023, Lars Moravy noted that Tesla’s next-generation platform is not one vehicle and will be used across different segments. Given Tesla’s history, the company may release vehicles using the next-gen platform one by one over time, much like the original Roadster, S3XY lineup, the Semi—and soon the Cybertruck. With that in mind, Tesla may have already teased the segment of the first new vehicle using its next-gen platform.
There is only one car that Tesla has already unveiled that has not reached production—the new Roadster. However, in an interview, Tesla’s Design Chief Franz Von Holzhausen stated that the new Roadster is not a priority for the company right now. So, the new Roadster might not be the next-gen vehicle Gigafactory Mexico will be building.
Tesla’s $25,000 vehicle, unofficially dubbed the “Model 2” or “Model Q” by EV advocates online, has not been unveiled yet. However, Elon Musk and other executive members of the company have mentioned it a few times over the years. A $25,000 electric vehicle would be in high demand, resulting in particular supply needs that Tesla did not have the capacity to provide in the past.
However, Tesla has grown in many areas, particularly in production, cash flow, and supply chain connections. Since announcing the Semi, for example, Tesla has designed and started manufacturing its own battery cell, solving many constraints. With Tesla’s growth, some obstacles for Model 2 production might have been cleared.
Currently, Tesla is keeping its mouth tightly zipped regarding the segment and moniker of its next-gen vehicle. But Tesla executives did share some details about the next-gen car during Investor Day 2023.
Tesla’s next-gen vehicle will obviously use its next-gen platform. Colin Campbell, Tesla’s VP of Powertrain engineering, noted that the company’s new powertrain will be compatible with any battery chemistry. He also stated that Tesla’s next drive train does not use any rare metals. Moving forward, Tesla will also switch from 12V to 48 low-voltage systems.
The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.
News
Tesla launches Full Self-Driving in a new region
Today, Tesla launched Full Self-Driving in Australia for purchase by car buyers for $10,100, according to Aussie automotive blog Man of Many, which tried out the suite earlier this week.

Tesla has launched its Full Self-Driving suite in a new region, marking a significant step in the company’s progress to expand its driver assistance suite on a global scale.
It is also the first time Tesla has launched FSD in a right-hand-drive market.
Today, Tesla launched Full Self-Driving in Australia for purchase by car buyers for $10,100, according to Aussie automotive blog Man of Many, which tried out the suite earlier this week.
Previously, Basic and Enhanced Autopilot suites were available, but the FSD capability now adds Traffic Light and Stop Sign Control, along with all the features of the previous two Autopilot suites.
🚨 Tesla has officially launched Full Self-Driving in Australia for the price of $10,100 outright.
The move marks a significant step in Tesla’s progress to expand the suite on a global scale pic.twitter.com/zzHa8Ngqls
— TESLARATI (@Teslarati) August 28, 2025
It is the first time Tesla has launched the suite by name in a region outside of North America. In China, Tesla has “City Autopilot,” as it was not permitted to use the Full Self-Driving label for regulatory reasons.
However, Tesla still lists Full Self-Driving (Supervised) as available in the U.S., Canada, China, Mexico, and Puerto Rico.
The company teased the launch of the suite in Australia earlier this week, and it appeared to have been released to select media members in the region earlier this week:
Tesla FSD upcoming Australia release seemingly teased bv media
The rollout of Full Self-Driving in the Australian market will occur in stages, as Model 3 and Model Y vehicles with Hardware 4 will receive the first batch of FSD rollouts in the region.
TechAU also reported that “the initial deployment of FSDs in Australia will roll out to a select number of people outside the company, these people are being invited into Tesla’s Early Access Program.”
Additionally, the company reportedly said it is “very close” to unlocking FSD in customer cars:
BREAKING: Tesla has officially announced that FSD (Supervised) is launching in Australia, marking a huge milestone for the company.
The rollout will happen in stages. HW4 Model 3s and Model Ys will get it first. Tesla says it is “very close” to being unlocked in customer cars.… pic.twitter.com/r1dYnFRa6o
— Sawyer Merritt (@SawyerMerritt) August 28, 2025
Each new Tesla sold will also come with a 30-day free trial of the suite.
Australia is the sixth country to officially have Full Self-Driving available to them, following the United States, Canada, China, Mexico, and Puerto Rico.
Here’s the first look at the suite operating in Australia:
News
Tesla AI6 chips will start sample production at surprising Samsung site
AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

It appears that the initial sample production of Tesla’s next-generation AI6 chip would not start in Samsung’s United States-based facilities.
AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.
Early AI6 production
As noted in a ZDNet Korea report, the production of initial samples of Tesla’s AI6 chip is expected to start at Samsung Electronics’ domestic foundry and packing facilities in South Korea. Mass production for AI6 chips will follow at the tech giant’s Texas-based foundry in Taylor, which is expected to start operations in 2025. Investment in mass production facilities for the Taylor plant are expected to start this year, the publication noted.
Samsung has reportedly finalized the process design kit for its second-generation 2nm technology. This node offers a 12% performance improvement, 25% lower power consumption, and an 8% reduction in chip area compared to its previous-generation counterparts.
Tesla’s AI6 deal
As per previous reports, Tesla has signed a $16.5 billion contract with Samsung for the production of its AI6 chips. In a post on social media platform X, Musk clarified that $16.5 billion is actually just the bare minimum. Considering that the demand for AI6 chips will be substantial due to the ramp of products such as Optimus and the Cybercab, it would not be farfetched if the deal becomes notably larger in the future.
Musk has shared his excitement for Samsung’s production of AI6 chips, with the CEO stating on X that he would “walk the line personally” in the facility to “accelerate the pace of progress.” In a follow-up comment, the Tesla CEO stated that Samsung is fully aware of what a real partnership with Tesla will be like. “I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like. Use the strengths of both companies to achieve a great outcome,” Musk wrote in his post.
News
Elon Musk’s Boring Company begins Tesla FSD testing in Las Vegas tunnels
The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill.

The Boring Company has started testing Tesla’s Full Self-Driving (Supervised) system in its Las Vegas tunnels.
The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill in a comment to Fortune.
Controlled FSD testing
In his comments, Hill noted that Tesla’s FSD tests in the Boring Company’s underground tunnels in Las Vegas have been going on for months. However, the full-self driving Teslas have reportedly not been carrying passengers during the tests. Interestingly enough, Hill noted that the FSD-driven vehicles have not had any incidents in the Boring Company tunnels yet, though safety drivers have been required to intervene “periodically.”
Hill further noted that the self-driving Teslas have found some spots that seem quite difficult in the underground tunnels system. The LVCVA CEO added that the rock walls of the Boring Company tunnels and their colorful lighting have created some “interesting but odd lighting” for FSD. That being said, Hill noted that the FSD tests are ongoing, though the LVCVA will likely be a consultant before the self-driving vehicles’ safety drivers are removed.
The executive, however, noted that it will only be a matter of time before the Teslas in Las Vegas’ Boring Company tunnels are operating without a driver. “Sooner or later, this is going to be autonomous,” Hill said.
Vegas Loop updates
The Boring Company’s underground transit system has been operating beneath the Las Vegas Convention Center for about four years. While the network is slated for expansion across more of the city, it currently connects the convention grounds with a handful of nearby hotels. Updates from the Boring Company’s official social media account on X suggests that tunneling is underway across other stops in Las Vegas.
As per the Boring Company on its official website, the greater Vegas Loop, when completed, will have 104 stations across 68 miles of tunnels. This should allow the underground system to serve an estimated 90,000 passengers per hour. It will also be able to connect key locations across the city, such as Harry Reid International Airport, Allegiant Stadium, and downtown.
While the Vegas Loop is nowhere near complete, Hill noted that the system is already well appreciated by residents and visitors. As per the LVCVA CEO, the underground transport system is the “highest rated feature we have” at the Convention Center. “People love it,” he said, adding that the only reason the tunnels are not coming faster is due to holdups with permits. “We’re holding them back. They’re not holding us back,” he stated.
-
Elon Musk19 hours ago
SpaceX Starship Flight 10 was so successful, it’s breaking the anti-Musk narrative
-
News15 hours ago
Tesla appears to have teased a long-awaited Model Y trim for a Friday launch
-
News1 day ago
Tesla China working overtime to deliver Model Y L as quickly as possible
-
News3 days ago
Tesla Model Y L sold out for September 2025
-
Elon Musk3 days ago
Elon Musk argues lidar and radar make self driving cars more dangerous
-
News1 day ago
Tesla Semi earns strong reviews from veteran truckers
-
Elon Musk1 day ago
Tesla reveals it has expanded its Robotaxi fleet in Austin
-
Elon Musk6 days ago
Elon Musk takes aim at Bill Gates’ Microsoft with new AI venture “Macrohard”