Tesla will set up a super factory in Mexico, and the supplier and master will rent the local plant at a cost of 10.72 million US dollars.

CTOnews.com March 7, the U. S. electric car manufacturer Tesla announced on March 1 that it will set up a super factory in Mexico. Heshuo, one of Tesla's suppliers, announced yesterday that it would expand its plant in Mexico, but would not disclose the product category, according to the Taiwan media central news agency.

Taiwan media pointed out that Pegatron Mexico S.A. De C.V., a subsidiary of Heshuo. According to the announcement, it will acquire the right to use the factory in the city of Ciudad Juarez in the state of Chihuahua in northern Mexico for $10.72 million (CTOnews.com note: about 74.397 million yuan), with a leased area of 22296.53 square meters.

Mexican officials had previously said Tesla would spend about $5 billion (currently about 34.7 billion yuan) to build a large factory in the northern Mexican city of Monterrey. Tesla CEO Elon Musk said the company had chosen Mexico as its next "super factory" and planned to produce "next-generation cars".

In addition, Pegatron plans to spend about $300m (currently about 2.082 billion yuan) to $350 million (about 2.429 billion yuan) on capital expenditure this year, mainly for global plant expansion and upgrading of machinery and equipment in Southeast Asia and Mexico.