Mexico’s Economy Minister Marcelo Ebrard plans to meet with Tesla CEO Elon Musk to discuss the company’s potential electric vehicle factory in northern Mexico, he announced Thursday. This meeting is part of a broader effort to strengthen the country’s car manufacturing sector.
Ebrard, a seasoned political figure, aims to revive plans for a Tesla gigafactory in the Nuevo Leon state, which could mark a significant early achievement for the government of President Claudia Sheinbaum, who took office last month.
“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 said in an interview with Radio Formula.
Tesla, the world’s leading electric vehicle manufacturer, had previously announced it would focus on utilizing its existing factories to build more affordable vehicles, delaying any new factory investments, including in Mexico.
The possibility of a Tesla factory in Mexico faces new complications following the U.S. presidential election. President-elect Donald Trump’s victory adds uncertainty to the plans, with potential shifts toward manufacturing within the U.S. During his first term, Trump pushed U.S. companies to prioritize domestic production, and as a candidate, he proposed imposing tariffs of up to 200% on vehicles imported from Mexico.
Earlier reports indicated that Tesla had abandoned plans to launch its Model 2 vehicle, which was initially slated to be produced in Mexico, Texas, and another location.
Despite denying these reports, Musk did not provide further details at the time. The Model 2, priced at an estimated $25,000, was expected to drive Tesla’s entry into the mass-market vehicle segment.