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A look at Tesla’s potential new Gigafactory locations: Mexico, Canada, Indonesia or South Korea
Recent reports indicate that Tesla’s new gigafactory could be located in Mexico. The EV maker is expected to announce the location of its new factory this week.
Besides Mexico, there have been a few locations that Tesla has considered for its new gigafactory. Even if Mexico is Tesla’s new gigafactory location, the other places in the running are not completely out of the question.
Tesla North America
Canada and Mexico are the top choices for Tesla’s new gigafactory in North America. Cars made in either country would benefit from the United States’ new EV subsidies.
Between the two, Tesla appears to be leaning more towards Gigafactory Mexico. Although Tesla also appears to be considering a partnership with Canada for parts.
Tesla Giga Mexico
Sources close to the matter told Bloomberg News that Tesla plans to announce its new gigafactory in Mexico later this week. The plan will reportedly be located in Santa Catarina, Monterrey City. Tesla still has to iron out a few details regarding Giga Mexico.
-->The company has been talking with the state government of Nuevo Leon and Mexico’s foresight relations ministry over the past few weeks. The EV manufacturer has already established a good business relationship with the state government of Nuevo Leon.
Tesla has an exclusive customs lane for parts from the Nuevo Leon border into Texas. Another benefit to building in Mexico is that Tesla vehicles would still qualify for EV subsidies in the United States from the Inflation Reduction Act (IRA).
Tesla Giga Canada
Elon Musk teased a possible gigafactory in Canada during Giga Texas’ Cyber Rodeo event earlier this year. Tesla has been active in Canada these past few months through lobbying efforts and discussions with Canadian officials.
In September, Canada’s Minister of Industry Francois-Philippe Champagne stated that Tesla did discuss the possibility of building a factory in Canada. Earlier this year, Champagne emphasized that Canada hopes to be the auto industry’s new “supplier of choice.” Canada has the minerals and supplies automakers need to manufacture electric vehicles and EV batteries. In August, for instance, Volkswagen and Mercedes-Benz signed separate agreements with Canada for EV battery materials.
Tesla already has a facility in Canada that builds some of the machines the company uses in its gigafactories worldwide. A gigafactory in Canada would also qualify for EV subsidies in the IRA.
-->Tesla Gigafactories in Asia
Gigafactory Shanghai will likely be Tesla’s main headquarters in Asia. However, as the EV maker expands its presence in all of Asia, it would need to partner with more Asian countries. Indonesia and South Korea are two viable partners that could boost Tesla’s supply chain and presence in the East.
Tesla Indonesia
Elon Musk has met with Indonesia’s President Joko “Jokowi” Widodo multiple times this past year. Jokowi has been working hard to establish a relationship with Musk and form a partnership between Indonesia and Tesla.
In August, Tesla reportedly signed a nickel contract with Indonesia worth $5 billion. Indonesia has major nickel reserves, attracting car makers worldwide, like Tesla. However, Jokowi emphasized his desire to build fully electric vehicles in the country.
“What we want is the electric car, not the battery. For Tesla, we want them to build electric cars in Indonesia. We want a huge ecosystem of electric cars,” President Jokowi said.
Tesla South Korea
Last month, South Korea’s President Yoon Suk-Yeol reportedly talked with Elon Musk. According to officials in President Yoon’s office South Korea was a top candidate for Tesla’s next factory in Asia.
Elon Musk and President Yoon discussed Tesla increasing its cooperation with South Korea in terms of supply chain. The South Korean President also offered special incentives to encourage investments from Tesla and SpaceX.
-->“If Tesla, SpaceX or other companies are considering more investment in [South] Korea, including constructing a gigafactory, the government will do our best to support the investment,” President Yoon said.
Tesla is expected to announce the location of its next gigafactory later this week. Mexico appears to be the location of choice. However, given Tesla’s activities in other countries, Canada, Indonesia, and South Korea might not be entirely out of the running.
What do you think of these locations for Tesla’sTesla’s next gigafactory? Does Tesla need another partner in Asia? Tell us in the comments below.
If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.
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News
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Tesla’s Full Self-Driving (Supervised) program is accelerating across Europe, with Spain emerging as a key testing hub under the country’s new ES-AV framework program.
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Spain’s ES-AV framework
Spain’s DGT launched the ES-AV Program in July 2025 to standardize testing for automated vehicles from prototypes to pre-homologation stages. The DGT described the purpose of the program on its official website.
“The program is designed to complement and enhance oversight, regulation, research, and transparency efforts, as well as to support innovation and advancements in automotive technology and industry. This framework also aims to capitalize on the opportunity to position Spain as a pioneer and leader in automated vehicle technology, seeking to provide solutions that help overcome or alleviate certain shortcomings or negative externalities of the current transportation system,” the DGT wrote.
The program identifies three testing phases based on technological maturity and the scope of a company’s operations. Each phase has a set of minimum eligibility requirements, and applicants must indicate which phase they wish to participate in, at least based on their specific technological development.
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Tesla FSD tests
As noted by Tesla watcher Kees Roelandschap on X, the DGT’s new framework effectively gives the green flight for nationwide FSD testing. So far, Tesla Spain has a total of 19 vehicles authorized to test FSD on the country’s roads, though it would not be surprising if this fleet grows in the coming months.
The start date for the program is listed at November 27, 2025 to November 26, 2027. The DGT also noted that unlimited FSD tests could be done across Spain on any national route. And since Tesla is already in Phase 3 of the ES-AV Program, onboard safety operators are optional. Remote monitoring would also be allowed.
Tesla’s FSD tests in Spain could help the company gain a lot of real-world data on the country’s roads. Considering the scope of tests that are allowed for the electric vehicle maker, it seems like Spain would be one of the European countries that would be friendly to FSD’s operations. So far, Tesla’s FSD push in Europe is notable, with the company holding FSD demonstrations in Germany, France, and Italy. Tesla is also pushing for national approval in the Netherlands in early 2026.
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Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise.
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise for its smoother performance and smarter decision-making.
Videos and firsthand accounts from Tesla owners highlight V14.2.1 as an update that improves navigation responsiveness, sign recognition, and overall fluidity, among other things. Some drivers have even described it as “more alive than ever,” hinting at the system eventually feeling “sentient,” as Elon Musk has predicted.
FSD V14.2.1 first impressions
Early adopters are buzzing about how V14.2.1 feels less intrusive while staying vigilant. In a post shared on X, Tesla owner @LactoseLunatic described the update as a “huge leap forward,” adding that the system remains “incredibly assertive but still safe.”
Another Tesla driver, Devin Olsenn, who logged ~600 km on V14.2.1, reported no safety disengagements, with the car feeling “more alive than ever.” The Tesla owner noted that his wife now defaults to using FSD V14, as the system is already very smooth and refined.
Adverse weather and regulatory zones are testing grounds where V14.2.1 shines, at least according to testers in snow areas. Tesla watcher Sawyer Merritt shared a video of his first snowy drive on unplowed rural roads in New Hampshire, where FSD did great and erred on the side of caution. As per Merritt, FSD V14.2.1 was “extra cautious” but it performed well overall.
-->Sign recognition and freeway prowess
Sign recognition also seemed to show improvements with FSD V14.2.1. Longtime FSD tester Chuck Cook highlighted a clip from his upcoming first-impressions video, showcasing improved school zone behavior. “I think it read the signs better,” he observed, though in standard mode, it didn’t fully drop to 15 mph within the short timeframe. This nuance points to V14.2.1’s growing awareness of temporal rules, a step toward fewer false positives in dynamic environments.
FSD V14.2.1 also seems to excel in high-stress highway scenarios. Fellow FSD tester @BLKMDL3 posted a video of FSD V14.2.1 managing a multi-lane freeway closure due to a police chase-related accident. “Perfectly handles all lanes of the freeway merging into one,” the Tesla owner noted in his post on X.
FSD V14.2.1 was released on Thanksgiving, much to the pleasant surprise of Tesla owners. The update’s release notes are almost identical to the system’s previous iteration, save for one line item read, “Camera visibility can lead to increased attention monitoring sensitivity.”
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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
