Tesla has confirmed plans to establish its first African car manufacturing plant in Morocco’s Kenitra free zone, investing $5 billion to produce 400,000 electric vehicles annually by 2027, signalling a major boost to Morocco’s ambition as a regional EV manufacturing hub.
The Moroccan automotive sector is rapidly emerging as a magnet for global investment, particularly in the electric vehicle (EV) industry, highlighted by Tesla’s latest move to establish a presence in the country. A newly formed Moroccan subsidiary of Tesla has been confirmed, reinforcing the company’s growing interest in the market. This initiative comes on the heels of Starlink, another Elon Musk venture, which recently launched satellite internet services in Morocco, underscoring Musk’s expanding footprint in the region.
Morocco has steadily cemented itself as a pivotal automotive hub, attracting renowned manufacturers such as Renault and Stellantis who have set up production facilities in the country. The nation offers a compelling business environment. It features modern industrial zones, a skilled workforce, and strategic export policies targeting Europe, Africa, and the Americas. Tesla’s entry fits neatly into this trajectory, signalling the brand’s enthusiasm to tap into Morocco’s growth potential and leverage its strategic location as a gateway to wider African markets.
More significantly, Tesla is poised to construct its first African car manufacturing plant in Morocco’s Kenitra free zone, near the Tangier Med port. The planned factory spans 300 hectares and represents a $5 billion investment aimed at producing 400,000 vehicles a year, including the popular Model Y and a forthcoming compact model priced at around $25,000, designed specifically for emerging markets. Construction is scheduled to commence in September 2025, with production expected to begin by late 2027. This mega-project is anticipated to generate approximately 25,000 direct and indirect jobs, boosting local employment and industrial activity.
Tesla’s arrival could have a transformational impact on Morocco’s industrial ecosystem. It is likely to spur growth among suppliers, technological startups, and educational centres, helping to elevate the sophistication of the country’s automotive sector. More importantly, this aligns with Morocco’s own ambitions to become a leader in Africa’s auto industry, particularly by focusing on electric and green technologies. Government incentives have been key in fostering investments with high technological content, making Morocco an attractive proposition for cutting-edge industries.
The expansion is part of a broader momentum building around electric mobility in Morocco. Tesla’s deployment of its first two Supercharger stations in Casablanca and Tangier marked the company’s initial foray into the African EV market, signalling a commitment to developing charging infrastructure essential for electric vehicles’ adoption. Complementing Tesla’s ventures, STMicroelectronics recently inaugurated a chip production line near Casablanca for manufacturing automotive microchips destined for Tesla EVs, addressing critical supply chain needs and reinforcing Morocco’s emerging role in the semiconductor and EV manufacturing sectors.
Adding to this vibrant landscape, Chinese investment has also played a role. The BTR New Material Group has inked a deal worth over $300 million to establish a factory producing EV battery components in Morocco’s Tangier Tech zone. Such diversification of investment highlights Morocco’s strategy to become not just a vehicle assembly centre, but a comprehensive EV manufacturing hub with integrated supply chains.
