Elon Musk announced a significant change in production plans for Tesla about his new “cashless process”. This process, revealed at Tesla’s Investor Day in March 2023, promises to revolutionize car manufacturing by enabling faster, more efficient production.
Initially, it was planned that the Tesla Gigafactory of Mexico was the first to implement this revolutionary manufacturing method. However, according to a recent leak of Musk’s biography written by Walter Isaacson, a change in plans has been confirmed. In May 2023, the decision was reversed in favor of Tesla Gigafactory in Texas USA.
This strategic decision has important implications for Tesla. The Texas factory will be the production center for Tesla’s next-generation vehicles, it is expected 25 thousand cheaper than the current models. In addition, this location will be the first to assemble the long-awaited robot-taxis, which will be pioneers in the use of the novel “cashless process.”
What caused Tesla to change from Mexico to Texas?
The reason behind this change lies in the importance of meeting Tesla’s ambitious goal of producing 20 million vehicles per year by 2030. Any delay in the commercialization of these new vehicles could harm the achievement -ot this goal. Therefore, the implementation of these projects in an existing factory in Texas is considered the most practical and strategic option.
In addition to speeding up the production of affordable electric vehicles, this decision will also allow Tesla to perfect the “boxless process” in Texas and will later implement it in other factories, including the upcoming Gigafactory in Mexico.
This change in production strategy highlights Tesla’s ability to quickly adapt to changing conditions and remains an important step towards transforming the automotive industry and promoting sustainable mobility.
