Tesla Targets Ontario for Next North American Gigafactory
A recent lobbyist registration reveals Tesla is actively engaging with the Ontario government to build a new advanced manufacturing facility.
Tesla hints strongly at building its next gigafactory in Canada after adding an amendment to its lobbying registration in Ontario. The automaker expresses plans to engage directly with the Ontario government 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 acknowledges his half-Canadian heritage.
Ontario presents a highly attractive location for Tesla due to its existing and thriving automotive ecosystem. The region already hosts major manufacturing plants for Ford and General Motors, and the Canadian government recently invests $415 million into GM's new electric vehicle plants in the province. Ontario's economic development minister highlights that the region lowers business costs by $7 billion annually and attracts nearly $16 billion in EV investments over the last 20 months.
Choosing another North American location makes strategic sense for Tesla as the U.S. accounts for the vast majority of its global vehicle sales. Expanding closer to home helps the company avoid the supply chain headaches and lockdown disruptions that recently impact its Shanghai factory. Musk states that Tesla ultimately plans to operate 10 to 12 gigafactories globally, making this potential Ontario facility a crucial step in that broader expansion.