Tesla may soon open a factory in Canada

Tesla may soon open a factory in Canada

Elon Musk fueled speculation about the possible installation of a Tesla gigafactory in Canada during the company’s annual shareholder meeting. During the event, he asked the audience about the ideal location for this assembly plant of the future. When the audience shouted ” Canada! “, the CEO of the company said” I am half Canadian […] maybe it is necessary “. Although Musk responded jokingly, there is every reason to believe that Tesla takes this lead very seriously, knowing that the lobbying process had been initiated in Ontario since July.

Tesla is getting closer to Canada

While Elon Musk hinted that a new Tesla assembly plant would be up and running by the end of the year, he remained skeptical about its location. However, there are many signs that the company plans to establish itself in Canada.

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Previously, lobbyists from a large American corporation registered activities with the government of Ontario, aimed at identifying opportunities for industrial facilities. These representatives tried to convince the local administration using the advantages of this project, such as competition and attractiveness of investors.

In a second move, Elon Musk said in June that Tesla plans to build a site in North America, outside of the United States. And that’s not counting the construction of a new factory in Shanghai that will have the capacity to produce an additional 450,000 vehicles annually. With the establishment of a gigafactory in Canada, the US market for batteries and accessories will be greatly supplied.

Ontario is ready to receive Tesla

In turn, the government of Ontario encouraged this project to install Tesla within its walls. According to Vic Fedeli, Minister of Economic Development, Job Creation and Business, the region has attracted nearly $16 billion in investment in electric vehicles over the past 20 months. ” We expect more and more companies from around the world to look at our region as a place for investment and growth. “, he added.

By building its new factory near the United States, Tesla intends to strengthen its operations in a difficult geographical and political environment. Recently, the company has seen its sales drop by 18% due to the Covid-19 restrictions in China.