Tesla Gigafactory Mexico and its future are completely in limbo now that President-Elect Donald Trump defeated Kamala Harris within the Presidential Election.
Nevertheless, the nation’s financial system chief, Marcelo Ebrard, continues to be hopeful he can strike a take care of 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 deliver extra readability to the state of affairs now that the election has ended.
Tesla deliberate to try the manufacturing facility 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 concerning the excessive rate of interest surroundings on the time:
“No, we’re undoubtedly making the manufacturing facility in Mexico. We really feel superb about that. We put a whole lot of effort into taking a look at totally different areas, and we really feel superb about that location, and we’re going to construct a manufacturing facility there. And it’s going to be nice.”
Nevertheless, 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 intrude with the purpose of the plant.
Musk stated earlier this 12 months:
“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 automobiles produced in Mexico, so it doesn’t make sense to take a position lots in Mexico if that’s going to be the case. So we’ll form of must see how issues play out politically.”
Tesla would doubtless not use the manufacturing facility for less than Mexico and South America. It might enhance manufacturing for the USA and assist deliveries, as nicely.
So this makes issues tough, and justifying a brand new manufacturing facility can be a tough argument to make.
In July, Mexico stated Tesla by no means registered an important funding utility 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 may need modified.
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