The state government of Nuevo León remains upbeat about Tesla’s plans to invest in a local production plant despite recent reprioritization.
Tesla prioritizes Texas, Mexico on hold for now
Tesla declared Mexico the next location of its planned new gigafactory in March 2024. The Musk-led company initially planned to accelerate the project, but it suffered from a major delay due to various market challenges.
The electric vehicle giant officially announced its decision to postpone the Giga Mexico project last October 2023 due to uncertainties in the global economy.
Despite the delay, CEO Elon Musk guaranteed that Tesla is not totally ditching the project. However, the timeline depends on the global economic recovery to minimize risks.
This said, Tesla opted to prioritize its investments in Texas while it tests the waters in Mexico.
Mexico believes Tesla gigafactory still in plans
Interestingly, Mexican officials still believe that the Giga Mexico is progressing despite Tesla’s recent plan changes.
According to Nuevo León Economy Secretary Iván Rivas’ remarks in late 2023, Tesla has finally obtained all the crucial permits to commence project development. It has also reportedly secured about $135 million worth of incentives for the local EV production plant.
Recently, Secretary Rivas said in response to a question that he is still in touch with Tesla about the project. He also believes that the Giga Mexico is still in plans.
“We have not had any change in signal, we also work hand in hand with them, for example right now in the incentive contract the communication is very close, we continue working, the only thing that I could not say and that is not defined, is when they are going to start, but Tesla is coming, Tesla is coming.”
Nuevo León Economy Secretary, Iván Rivas
Moreover, the Economy Secretary further revealed that the state government did not halt investments in necessary infrastructure to enable Tesla to construct the gigafactory:
“We continue to work a lot with them on what we somehow committed to, which was in the incentives that were already accepted, this had to do with infrastructure, we are working on expanding the Monterrey – Saltillo highway on the free highway so that it is three lanes So that it can be an easy exit, we are working on some bridges to be able to enter and leave the property where they are, and we are working with the treated water infrastructure part.”
Nuevo León Economy Secretary, Iván Rivas
The US elections may have influenced these recent happenings, as ex-US President and current Republican candidate Donald Trump warned of imposing tariffs on Mexico-made EVs. Such a threat may have played a role in Tesla’s decision to delay the planned Giga Mexico project.
