Tesla Considers Ontario, Canada for Next North American Gigafactory
A recent lobbyist registration reveals Tesla is actively engaging with the Ontario government to explore building a new advanced manufacturing facility. The move comes as the automaker looks to expand its global factory footprint beyond the headaches of its Shanghai plant.
Tesla hints strongly at building its next gigafactory in Ontario, Canada, according to a recent lobbyist registration filed with the provincial government. The automaker outlines plans to work directly with Ontario officials to identify opportunities for a new industrial and advanced manufacturing facility. This development follows a lighthearted exchange at Tesla's annual shareholder meeting, where CEO Elon Musk responded to audience shouts of "Canada!" by noting his half-Canadian heritage.
Ontario presents a highly attractive location for Tesla due to its already thriving automotive ecosystem and close proximity to Detroit. Ford and General Motors currently operate major plants in the region, and the Canadian government recently invests $415 million into GM's new Ontario facilities, including an electric vehicle plant. Ontario's economic development minister highlights that the province reduces business costs by $7 billion annually and successfully attracts nearly $16 billion in EV investments over the last 20 months.
Expanding into Canada makes strategic sense for Tesla as the company aims to operate 10 to 12 gigafactories globally. The United States currently accounts for the vast majority of Tesla's vehicle sales, making another North American location a logical next step. This potential shift comes as Tesla's Shanghai factory faces ongoing challenges, including consistent pandemic lockdowns and production line updates that cause regional vehicle sales to fall.