Tesla has reportedly acquired land in Nuevo Leon, Mexico, and it is on the verge of announcing a plan to build a factory on it.

Earlier this year, people crossing the border between Texas and Nuevo Leon were surprised to see not just the usual marked lanes for cars and trucks but also one marked “Tesla” (pictured above).

We ended up finding out that Tesla had struck a deal with the state of Nuevo Leon to have its own lane at the border crossing in order to reduce wait times for cargo going through the border. Or at least that was the explanation of Ivan Rivas, the economy minister of Nuevo Leon.

While it’s true that Tesla has several suppliers in the state, as we reported at the time, we suspected that the move might have more to do with Tesla potentially investing in a factory in the state.

Earlier this year, we reported on CEO Elon Musk confirming that Tesla is considering sites for a new factory in Canada, Mexico, and the United States when discussing its next plant in North America.

In October, rumors of a Tesla factory in Mexico ramped up as Tesla CEO Elon Musk visited the state and met with the governor. Local media reported that Tesla was particularly interested in a location in Santa Catarina, a municipality just outside of Monterrey. 

Following the visit, the government confirmed discussions of a possible investment in the state.

Now rumors of Tesla investing in a manufacturing facility in Nuevo Leon are reaching a whole new level as local media Milenio claims Tesla and the state have reached a deal that will be announced in early 2023.

The source said (translated from Spanish):

Tesla will come to Santa Catarina. The investment will be finalized in the coming weeks; after the end of the year it will be announced. The commitment is that it must be completed immediately after the start of 2023. We know that it will generate employment and it will be located in the only area available, which is the west of that municipality. It is not possible to inform more, because there is a confidentiality contract.

According to the same report, Tesla has already acquired the land in Santa Catarina for the factory.

However, what type of factory Tesla plans to build in Mexico is still unknown. Tesla is best known for its Gigafactories, which builds electric vehicles and other products at an epic scale, but the automaker has lately also announced plans for factories producing battery cells and battery materials.