MONTERREY CITY, Mexico—According to Bloomberg News, Tesla is finalizing plans to build a vehicle assembly plant in an industrial area of northeastern Mexico. The factory will be located in Santa Catarina in Monterrey City, the capital of the Nuevo Leon state. While the details are still being worked out, the talks with the company have involved the state government and Mexico's foreign relations ministry.

The company already operates four assembly plants: Austin, TX, and Fremont, CA, in the United States, Shanghai in China, and Berlin in Germany. The first two mainly serve the North American market and have combined production capacities of 900,000 vehicles per year, according to Tesla. They produce all models of vehicles sold by Tesla: Model 3, Model Y, Model X and Model S. From mid-2023, the Austin plant will also produce the highly anticipated Cybertruck in addition to the Model Y.

In Shanghai, the car manufacturer produces vehicles sold in Asia and Europe. However, since the opening of the Tesla plant in Germany in March, the European market should be mainly served by this production site. Giga Shanghai has a production capacity of over 750,000. 

The German factory is the only European production site of Musk's company. It is a car assembly site and a battery development site with an annual production capacity of over 250,000.

Tesla will not be the only automotive group manufacturing vehicles in Mexico. General Motors and Ford are already established there.