Tesla considering Canada as a new factory site

Tesla Inc. is lobbying to set up its own electric car facility in Canada as part of a "high-tech manufacturing" program. 

The corporation’s Canadian unit is engaged with the government to further develop the country's industrial base, as the updated filing from July 18 claimed. 

Back in May, François-Philippe Champagne, Minister of Innovation, Science and Industry, announced that the Canadian administration was holding talks with “a number of manufacturers” to develop an effective EV supply chain within the country.

Tesla Inc. has been actively promoting production as of late. Last week, netizens paid attention to the speech of Elon Musk, the corporation’s CEO. The owner hinted at Canada as a possible construction site at its annual meeting of stockholders. Notably, the announcement could be issued later this year. The province of Ontario is most likely to become a new building ground.

Additionally, the company has repeatedly announced its intention to open at least 10-12 gigafactories around the globe. Tesla manufactures EVs in the U.S., Germany and China. 

The American corporation is constantly looking for raw materials. Canada is considered a perfect construction site, as it possesses a major mineral resource base for large-scale production. On top of that, Tesla produces vehicles closer to the U.S. principal office to diversify supply chains, as well as reduce a dependence on China, the world's largest battery supplier.

The U.S. government has already committed $430 billion to a bill adopted on Sunday aimed at reducing the country's manufacturing reliance on a foreign market. Thus, a ban on using Chinese materials is introduced. The following point also concerns setting a particular percentage of vehicle components that must be sourced from North America.

Over the coming year, no tax credit would be provided for purchasing EVs with Chinese-made parts. Restrictions on the supply of essential minerals are also being introduced.