Borderlands Mexico: Tesla plans massive Texas distribution center 

The project covers 538,720 square feet and carries an estimated construction cost of $1.44 million. Work is scheduled to begin Dec. 7 and be completed Dec. 4, 2028, according to the state filing.

The filing describes the project as a “new lease space build-out for Tesla in the existing Office/WHSE building.” The privately funded project was registered with the state Sept. 1.

The filing does not specify what products or materials Tesla will handle at the distribution center or how many employees will work there.

The project represents another expansion of Tesla’s operations in Central Texas, where the company has established Austin as its corporate headquarters and operates its massive Gigafactory Texas manufacturing complex.

Tesla’s (Nasdaq: TSLA) growing logistics footprint comes as the company ramps production and invests heavily in manufacturing capacity. Tesla reported second-quarter revenue of $28.24 billion, a 26% increase from a year earlier, while delivering a record 480,126 vehicles worldwide during the quarter.

Tesla said capital expenditures more than doubled sequentially to $5.8 billion during the quarter, with management expecting spending to exceed $25 billion this year as the company expands manufacturing capacity. 

Executives have also said battery availability and electronic components remain constraints on increasing vehicle production.

The company is also preparing to ramp production of its Class 8 Tesla Semi at its Nevada manufacturing facility. Tesla said in July that the Semi factory remained on schedule, with production expected to begin later this year.

The Mustang Ridge distribution project could also strengthen Tesla’s position along the Texas-Mexico automotive corridor, although the state filing does not identify the facility’s suppliers, customers or freight lanes.

Tesla already draws components from an extensive supplier network in Mexico. Tecma has reported that Tesla suppliers operate in Nuevo León, Coahuila, Tamaulipas, Chihuahua, the Bajío region and the state of Mexico, shipping automotive components north to Tesla’s Texas factory.

That supplier network gives the Austin region an important role not only in Tesla’s manufacturing operation but also in the cross-border movement of automotive parts and components between Mexico and Texas.

The new distribution center is scheduled for completion in December 2028.

Danfoss launches new production line in Mexico for North American market

Danfoss Climate Solutions has launched a new production line at its manufacturing complex in Apodaca, Nuevo León.

The Danish company is expanding production in Mexico to serve growing demand from North American data centers, according to Milenio and Mexico Industry.

The new line produces oil-free check and block valves used with Danfoss Turbocor centrifugal compressors in chillers and heat pumps. 

Danfoss said the expansion is aimed at shortening delivery times and strengthening supply chains for customers in the U.S. The company did not disclose the investment associated with the new production line.

The Apodaca operation will manufacture 12 valve models for North American original equipment manufacturers.

While initial production is delivered to customers operating in Mexico, about 80% of the finished products are ultimately exported to international markets, primarily the U.S., after being incorporated into chillers and commercial air-conditioning systems.

Danfoss has also doubled the physical footprint of its Apodaca complex over the past two years, increasing it from about 366,000 square feet to 721,000 square feet, in 2026.

Employment at the facility increased from 800 to 1,300 workers over the same period.

Danfoss said approximately 90% of the products manufactured at the Apodaca plant already comply with requirements under the United States-Mexico-Canada Agreement.

Denmark-based Danfoss has 100 factories worldwide (including 11 in the U.S. and siz in Mexico). The company has a global workforce of around 42,000.

Why it matters: Tesla’s new distribution center will add significant distribution capacity near its Austin manufacturing operations and the cross-border supply chains connecting its Texas production footprint with automotive suppliers in Mexico.