The company officially announced that the factory will be located just outside Monterrey in Nuevo León. Tesla has released an image of the factory but hasn't provided any further details about it other than it will produce vehicles based on their new vehicle platform.
Our next Gigafactory will be in Mexico, manufacturing our next-gen vehicle pic.twitter.com/bk0IKrGtaZ
— Tesla (@Tesla) March 2, 2023
While there is no timeline for completion yet, a quick regulatory process and road to construction and production have been part of the negotiation process with the government. Gigafactory Mexico is expected to replicate Tesla's success with Gigafactory Shanghai and Gigafactory Texas, both of which were brought into production relatively quickly.
Monterrey was chosen as a location due to its proximity to Gigafactory Texas and Tesla's headquarters - only a 7-hour drive from the new plant site.
Source: Tesla