MEXICO CITY, Dec 19 (Reuters) – Electric car maker Tesla (TSLA.O) Local newspaper Reforma reported on Monday that the northern Mexican state of Nuevo Leon could announce the construction of a “gigafactory” as soon as Friday with an initial investment of between $800 million and $1 billion.

Sources told the paper that taking into account future expansion, the total investment could eventually reach $10 billion.

The announcement will follow a visit in October by Chief Executive Elon Musk to the state, which borders Texas. A source told Reuters that Musk had met with Samuel Garcia, the governor of Nuevo Leon, and Ken Salazar, the US ambassador to Mexico.

The Mexican Gigafactory, planned on the outskirts of downtown Monterrey, will start by manufacturing components for current Tesla models, a source told Reforma, later possibly building a new model at a lower cost than other factories.

A federal official told Reuters that Tesla would announce news of its planned investment when it is ready to do so, but it would not necessarily be before Christmas.

If the announcement doesn’t happen on Friday, it could come in January, according to Reforma.

Mexican Foreign Minister Marcelo Ebrard said earlier this month that Musk had visited three states in Mexico scouting locations for the factory.

Tesla did not immediately respond to a Reuters request for comment.

Reporting by Kylie Madry and Dave Graham Editing by Bernadette Baum

Our Standards: Thomson Reuters Trust Doctrine.

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