RABAT, April 8 (AGCNewsNet) – Tesla has formalised plans to establish its first African manufacturing facility in Morocco, following months of confidential negotiations, Moroccan daily L’Economiste reported on Monday.

The $5 billion (approx. €4.65 billion) investment marks a major step in Morocco’s ambitions to become a regional industrial and energy powerhouse, firmly integrating the country into high-value global supply chains.

The factory will be located in the Kenitra free zone, spanning 300 hectares and situated near the strategic Tangier Med port, one of the largest in Africa. Tesla’s annual production capacity from the Moroccan plant is projected at 400,000 vehicles, with an estimated 25,000 direct and indirect jobs expected to be created.

The factory will manufacture the Model Y and a new compact electric vehicle priced at $25,000, targeting emerging markets across Africa and beyond.

“Morocco represents a strategic gateway to Africa and the Arab world, with a skilled workforce and a clear vision for the energy transition,” Tesla CEO Elon Musk was quoted as saying. He highlighted the Kingdom’s political stability and the logistical advantages of the Tangier Med port as key factors in the company’s decision.

The plant will join an already mature automotive ecosystem in Morocco, home to global automakers including Renault and Stellantis.

“The arrival of Tesla definitively establishes Morocco as a leading industrial platform,” Musk added.

Construction of the plant is scheduled to begin in September 2025, with vehicle production expected to commence in late 2027. The first units could roll out to markets as early as 2028.

Karim Tazi, President of the Federation of Mechanical and Metallurgical Industries, welcomed the move, calling it a milestone for the country’s industrial development. “Technology transfers will be considerable, particularly in batteries and on-board electronics,” he said.

Tesla’s entry into Morocco adds significant momentum to Africa’s push toward clean mobility and strengthens the continent’s appeal to global tech and automotive giants.

Stay connected with AGC NewsNet for the latest news from Africa.