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, continues to be hopeful he can strike a cope with CEO Elon Musk, whom he plans to fulfill 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 carry extra readability to the state of affairs now that the election has ended.
Tesla deliberate to try the manufacturing unit after the election, and it stays unclear if the automaker continues to be planning on constructing.
Musk stated through the Q3 2023 Earnings Name that Tesla would “undoubtedly” construct Giga Mexico. It was simply involved in regards to the excessive rate of interest surroundings on the time:
“No, we’re undoubtedly making the manufacturing unit in Mexico. We really feel excellent about that. We put a number of effort into totally different places, and we really feel excellent 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 doubtlessly be a difficulty for Tesla and would possibly intrude with the purpose of the plant.
Musk stated earlier this 12 months:
“We’re presently 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 take a position quite a bit in Mexico if that’s going to be the case. So we are going to type of have to see how issues play out politically.”
Tesla would probably not use the manufacturing unit for under Mexico and South America. It will improve manufacturing for america and help deliveries, as effectively.
So this makes issues tough, and justifying a brand new manufacturing unit could be a tough argument to make.
In July, Mexico stated Tesla by no means registered a vital funding software for the manufacturing unit. Raquel Buenrostro, the Secretary of the Financial system, stated Tesla had not put any official documentation collectively that it will be constructing a plant there. Tesla had made official bulletins confirming its intention to construct.
Now that the election has ended, Tesla’s plans might need modified.
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