Tesla Gigafactory Mexico and its future are completely in limbo now that President-Elect Donald Trump defeated Kamala Harris within the Presidential Election.
Nonetheless, the nation’s financial system chief, Marcelo Ebrard, remains to be hopeful he can strike a take care of CEO Elon Musk, whom he plans to satisfy with quickly.
Ebrard spoke on native radio in Mexico on Thursday and stated he’ll attempt to meet with Musk quickly. The assembly ought to convey extra readability to the scenario now that the election has ended.
Tesla deliberate to check out the manufacturing unit after the election, and it stays unclear if the automaker remains to be planning on constructing.
Musk stated through the Q3 2023 Earnings Name that Tesla would “positively” construct Giga Mexico. It was simply involved concerning the excessive rate of interest surroundings on the time:
“No, we’re positively making the manufacturing unit in Mexico. We really feel superb about that. We put a variety of effort into completely different areas, and we really feel superb about that location, and we’re going to construct a manufacturing unit there. And it’s going to be nice.”
Nonetheless, Trump says he’ll impose tariffs of 200 p.c on automobiles imported from Mexico, which might probably be a problem for Tesla and would possibly intervene with the purpose of the plant.
Musk stated earlier this 12 months:
“We’re at present on pause on Giga Mexico. I feel we have to see simply the place issues stand after the election…Trump has stated that he’ll put heavy tariffs on automobiles produced in Mexico, so it doesn’t make sense to speculate loads in Mexico if that’s going to be the case. So we are going to sort of have to see how issues play out politically.”
Tesla would probably not use the manufacturing unit for under Mexico and South America. It might improve manufacturing for america and assist deliveries, as properly.
So this makes issues troublesome, and justifying a brand new manufacturing unit could be a tough argument to make.
In July, Mexico stated Tesla by no means registered an important funding utility for the manufacturing unit. Raquel Buenrostro, the Secretary of the Economic system, stated Tesla had not put any official documentation collectively that it could be constructing a plant there. Tesla had made official bulletins confirming its intention to construct.
Now that the election has ended, Tesla’s plans may need modified.
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