Tesla has won Gigafactory Mexico’s Environmental Impact Permits, as the country’s Ministry of the Environment approved the factory’s initial construction phases.
The Ministry was required to approve the use of ANFO, a mixture of ammonium nitrate and petroleum-derived fuel, to level the property where Tesla’s factory will eventually stand.
Additionally, there are guidelines to follow as the area is considered a forest and must be cleared out to make way for the building. There are several areas where native trees cannot be removed, and Tesla may be required to plant trees that it takes down. This is similar to the terms that were required by German authorities as it started construction of Gigafactory Berlin in 2020.
The land where Tesla Giga Mexico will eventually stand (Credit: U.S. Geologic Survey (USGS))
Tesla will also be required to enact a plan to control dust emissions as the air quality will be called into question during the leveling and initial construction phases.
Tesla has been given 26 months to prepare the site and carry out construction activities, meaning the target for completion will be by the end of 2025.
There are still a handful of requirements that must be met by Tesla before the first stone can be laid and work can actually begin, according to a report from Telediario.
Tesla to submit formal letter of intent for Giga Mexico: report
Earlier this month, the Governor of Nuevo León, Samuel Garcia Sepulveda, said the factory was nearing initial approval.
“My friends and colleagues from Tesla are very happy because they have their gigafactories in Austin and San Francisco; they will already have direct flights when they come here to settle. I am also about to receive the start-up of the Gigafactory from Tesla,” the Governor said.
“We are going to start with the whole issue of water, it is treated water, from the train and adaptations and access to the highway, highway (Monterrey-Saltillo) to the plant, so pure good news, we are working with everything.”
Tesla confirmed in March at its Investor Day that it had chosen Mexico as the location for its next factory. The hold-up in the initial construction phases has been permitting, as well as combatting supplier delays, but it seems that the factory is finally moving in the right direction and ground clearing could happen soon.
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Even Tesla China is feeling the Optimus V3 fever
As per Tesla China, Optimus V3 is “about to be unveiled.”
Even Tesla China seems to have caught the Optimus V3 fever, with the electric vehicle maker teasing the impending arrival of the humanoid robot on its official Weibo account.
As per Tesla China, Optimus V3 is “about to be unveiled.”
Tesla China hypes up Optimus V3
Tesla China noted on its Weibo post that Optimus V3 is redesigned from first principles and is capable of learning new tasks by observing human behavior. The company has stated that it is targeting annual production capacity of up to one million humanoid robots once manufacturing scales.
During the Q4 and FY 2025 earnings call, CEO Elon Musk stated that Tesla will wind down Model S and Model X production to free up factory space for the pilot production line of Optimus V3.
Musk later noted that Giga Texas should have a significantly larger Optimus line, though that will produce Optimus V4. He also made it a point to set expectations with Optimus’ production ramp, stating that the “normal S curve of manufacturing ramp will be longer for Optimus.”
Tesla China’s potential role
Tesla’s decision to announce the Optimus update on Weibo highlights the importance of the humanoid robot in the company’s global operations. Giga Shanghai is already Tesla’s largest manufacturing hub by volume, and Musk has repeatedly described China’s manufacturers as Tesla’s most legitimate competitors.
While Tesla has not confirmed where Optimus V3 will be produced or deployed first, the scale and efficiency of Gigafactory Shanghai make it a plausible candidate for future humanoid robot manufacturing or in-factory deployment. Musk has also suggested that Optimus could become available for public purchase as early as 2027, as noted in a CNEV Post report.
“It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does,” Musk said during the earnings call.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Elon Musk
SpaceX-xAI merger discussions in advanced stage: report
The update was initially reported by Bloomberg News, which cited people reportedly familiar with the matter.
SpaceX is reportedly in advanced discussions to merge with artificial intelligence startup xAI. The talks could reportedly result in an agreement as soon as this week, though discussions remain ongoing.
The update was initially reported by Bloomberg News, which cited people reportedly familiar with the matter.
SpaceX and xAI advanced merger talks
SpaceX and xAI have reportedly informed some investors about plans to potentially combine the two privately held companies, Bloomberg’s sources claimed. Representatives for both companies did not immediately respond to requests for comment.
A merger would unite two of the world’s largest private firms. xAI raised capital at a valuation of about $200 billion in September, while SpaceX was preparing a share sale late last year that valued the rocket company at roughly $800 billion.
If completed, the merger would bring together SpaceX’s launch and satellite infrastructure with xAI’s computing and model development. This could pave the way for Musk’s vision of deploying data centers in orbit to support large-scale AI workloads.
Musk’s broader consolidation efforts
Elon Musk has increasingly linked his companies around autonomy, AI, and space-based infrastructure. SpaceX is seeking regulatory approval to launch up to one million satellites as part of its long-term plans, as per a recent filing. Such a scale could support space-based computing concepts.
SpaceX has also discussed the feasibility of a potential tie-up with electric vehicle maker Tesla, Bloomberg previously reported. SpaceX has reportedly been preparing for a possible initial public offering (IPO) as well, which could value the company at up to $1.5 trillion. No timeline for SpaceX’s reported IPO plans have been announced yet, however.
Even Tesla China is feeling the Optimus V3 fever
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
