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 economic system chief, Marcelo Ebrard, continues 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 deliver extra readability to the state of affairs now that the election has ended.
Tesla deliberate to check out the manufacturing facility after the election, and it stays unclear if the automaker continues to be planning on constructing.
Musk stated in the course of the Q3 2023 Earnings Name that Tesla would “undoubtedly” construct Giga Mexico. It was simply involved concerning the excessive rate of interest atmosphere on the time:
“No, we’re undoubtedly making the manufacturing facility in Mexico. We really feel excellent about that. We put a variety of effort into completely different areas, and we really feel excellent about that location, and we’re going to construct a manufacturing facility there. And it’s going to be nice.”
Nonetheless, Trump says he’ll impose tariffs of 200 % on autos 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 yr:
“We’re presently on pause on Giga Mexico. I believe we have to see simply the place issues stand after the election…Trump has stated that he’ll put heavy tariffs on autos produced in Mexico, so it doesn’t make sense to take a position so much in Mexico if that’s going to be the case. So we’ll sort of must see how issues play out politically.”
Tesla would seemingly not use the manufacturing facility for under Mexico and South America. It will improve manufacturing for the US and help deliveries, as properly.
So this makes issues tough, and justifying a brand new manufacturing facility could be a tough argument to make.
In July, Mexico stated Tesla by no means registered a vital funding software for the manufacturing facility. Raquel Buenrostro, the Secretary of the Financial system, stated Tesla had not put any official documentation collectively that it might 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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