Tesla plans to build a new factory in Mexico, joining other automobile companies expanding its presence in South America. Mexico’s President Andres Manuel Lopez Obrador claims that the electric vehicle manufacturer will have a plant in Monterrey, which is approximately three hours away from Texas.
Tesla is expected to provide additional details in its investor presentation. Mexico had previously voiced concerns about the factory’s potential regional water consumption. Andres Manuel Lopez Obrador, on the other hand, asserted that he had obtained assurances from Tesla CEO Elon Musk that had allayed those concerns.
As strains between the US and China upset conventional stockpile chains, Mexico is endeavouring to position itself as a champion. Andres Manuel Lopez Obrador stated at a press conference that this will result in a significant investment and numerous jobs. US President Joe Biden has emphasized the significance of manufacturing automobiles in the United States in order for automobiles to be eligible for new subsidies as part of a large spending plan to fight climate change.
The rules, on the other hand, do not apply to Mexico or Canada. As American businesses look to other countries for cost savings, Mexico’s role in the production of automobiles has grown. This would be Tesla’s third manufacturing facility outside the United States, following recent openings in China and Germany.
The most recent Tesla factory, according to the report, required an initial investment of $1 billion, which could grow to $10 billion in the future. Martha Delgado, the deputy foreign minister of Mexico, stated that the factory would produce approximately one million automobiles annually and that the investment would exceed $5 billion. Tesla’s truck and sports car would be produced at the plant, which would be a gigafactory.
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