Mexico’s Economy Minister is seeking a meeting with Elon Musk to clarify Tesla’s plans for the country. For now, the construction of Giga Mexico is on hold.
Mexico’s Economy Minister is seeking to set up a meeting with Tesla CEO Elon Musk soon. The minister is seeking to discuss the company’s plans to build an electric vehicle factory in northern Mexico, according to a report he gave to local radio. Current Economy Minister Marcelo Ebrard is a former foreign minister and seasoned politician. He is seeking to reopen discussions with Tesla and revive the company’s plans to build Giga Mexico in Nuevo Leon state.
“I’m going to set up a meeting with (Musk) soon so that he tells me exactly what he’s thinking and see what we can do so this project moves forward,” Ebrard told local radio broadcaster Radio Formula via Reuters.
Tesla has previously been busy preparing for a factory in Mexico. The company has selected a site and received a number of permits to clear the land. In addition, the local government has also begun expanding the infrastructure to accommodate the potential growing load. In February, Nuevo Leon Governor Samuel Garcia said construction of the factory would begin soon. However, Tesla has tempered expectations for a factory in Mexico in 2023. The company said construction was on hold due to uncertain global economic conditions.
At the time, Tesla said it would use its existing factories to ramp up production and build new vehicles, rather than invest in new factories. Since then, the company has made no further mention of potential expansion into new regions. Plans to build a factory in India have also been put on hold.
For Tesla, building a factory in Mexico may not be a viable option right now. With the new president, Donald Trump, taking office, US manufacturing policies may also change. He is expected to continue to pressure companies to manufacture as much as possible in the country. Tesla is already the manufacturer that sells the most American-made cars in the region, so it makes sense for the company to continue to expand in the US. Tesla also has a large territory in Texas where its factory, best engineers, and management are located. There, if necessary, it can expand its production space.
