Tesla could announce the construction of a "Gigafactory" in the northern Mexican state of Nuevo Leon as soon as Friday, local newspaper Reforma reported Monday.

The initial investment is projected at between $800 million and $1 billion, sources told the newspaper.

The announcement would follow Chief Executive Elon Musk's visit to the state, which borders Texas, in October. A source told Reuters then that Musk had met with Nuevo Leon Governor Samuel Garcia and U.S. Ambassador to Mexico Ken Salazar.

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

The total investment, taking into account future expansions, could tally up to $10 billion, Reforma reported.

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

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