Tesla Now Has Its Own Traffic Lane at the US/Mexico Border Crossing

When Tesla Inc TSLA opened Gigafactory Texas in Austin, it was aiming to produce its largest, most efficient factory yet.

What Happened: The factory is currently making the Model Y crossover and will soon produce large amounts of the company's new 4680 battery cells. In the future, the factory will also produce the hotly anticipated Cybertruck.

In order to produce more vehicles, Tesla needs to get supplies and raw materials into the Texas factory. To do that, the company has secured its own lane of travel, as shared by Bloomberg, for parts suppliers in Mexico to gain access at the Colombia Solidarity checkpoint to the U.S. This makes moving items through the border much quicker and easier for Tesla. Nuevo León, Mexico is home to at least six suppliers for Tesla, up from zero companies tied to the electric vehicle sector before 2021

Why It Matters: In the future, dedicated lanes for other companies may become a thing. It is still unclear exactly how Tesla garnered this deal, and what the specifics of using the lane entail. For now, Tesla has now pushed another new idea into the company's manufacturing dominance to help continue its rapid growth

Photo: Courtesy of Tesla

Market News and Data brought to you by Benzinga APIs
Posted In: NewsGlobalTechelectric vehiclesEVsMexicoUnited States
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!