Mexico Confident in Tesla Gigafactory Despite Recent Setbacks

Credit: Tesla

Despite recent setbacks and changes in Tesla’s plans, the Mexican state of Nuevo León remains optimistic about the arrival of the Tesla Gigafactory, believing that the project is still on track.

Tesla initially announced the Gigafactory Mexico in March 2023, aiming for rapid production commencement. However, in October, the company announced a temporary pause on the project due to global economic concerns. CEO Elon Musk affirmed that while the project was delayed, preparations were ongoing, including the procurement of “long lead items.” The final timeline for the factory’s construction and operation would depend on economic recovery, with Tesla prioritizing investments in Texas in the interim.

See also: Tesla’s Gigafactory in Mexico Unaffected by Global Staff Reductions

Despite Tesla’s cautious approach, Nuevo León’s Secretary of Economy, Iván Rivas, confirmed that the Gigafactory Mexico has obtained all necessary permits for construction and secured approximately $135 million in incentives for the factory.

Rivas expressed confidence in the project’s continuation, stating that while the start date is uncertain, ongoing communication with Tesla indicates that the factory is still part of their plans. He emphasized that Tesla and Nuevo León are working closely, particularly on infrastructure development to support the factory’s construction.

“We have not had any change in signal, we also work hand in hand with them,” Rivas said. “Tesla is coming, Tesla is coming.”

See also: Tesla Secures $153 Million Incentive Package for Giga Mexico

The state government is actively investing in infrastructure to facilitate Tesla’s operations, including the expansion of the Monterrey – Saltillo highway to three lanes and the development of bridges for easier access to the factory site. Additionally, the government is working on treated water infrastructure to support the factory’s needs.

The situation is further complicated by the potential impact of US politics, as former President Donald Trump had proposed imposing tariffs on electric vehicles manufactured in Mexico. Such tariffs could disrupt Tesla’s plans for the Gigafactory Mexico. However, despite these challenges, Nuevo León remains committed to supporting Tesla and the Gigafactory project.

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