Tesla discloses efforts to advocate for a facility in Canada

Tesla (NASDAQ:TSLA) Inc is pressing the Ontario government to create an "advanced manufacturing factory" in Canada, according to a document with the province's Office of the Integrity Commissioner.

According to the company's July 18 filing, its Canadian business is engaging with the government to "examine opportunities for industrial facility permitting enhancements."

Tesla and the ministry of economic development, job creation, and trade in Ontario did not immediately respond to requests for comment.

In May, the Canadian Minister of Industry, Francois-Philippe Champagne, announced that "very active negotiations with a number of stakeholders" were taking place in order to construct an EV supply chain in Canada.

Elon Musk, CEO of Tesla, joked to shareholders last week, "We've got a lot of Canadas, I'm half Canadian, maybe I should" in reference to the company's expanding output.

According to him, the company "may be able" to announce a new facility by the end of the year, and in the future, it may have ten to twelve gigafactories. Two of Tesla's production sites are located in the United States, while one each is located in Germany and China.

By sourcing components and producing vehicles closer to home, electric-vehicle makers in the United States are aiming to diversify their supply chains and lessen their reliance on China, the world's largest supplier of EV batteries.

Such efforts might be boosted by a $430 billion bill passed by the U.S. Senate on Sunday, which restricts automakers' use of Chinese-made parts by progressively increasing the percentage of battery components imported from North America.

After 2023, vehicles with batteries containing Chinese components may no longer be eligible for the credit, and restrictions may be placed on the supply of critical minerals.