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, remains to be hopeful he can strike a cope with CEO Elon Musk, whom he plans to satisfy with quickly.
Ebrard spoke on native radio in Mexico on Thursday and mentioned he’ll attempt to meet with Musk quickly. The assembly ought to convey extra readability to the scenario now that the election has ended.
Tesla deliberate to try the manufacturing facility after the election, and it stays unclear if the automaker remains to be planning on constructing.
Musk mentioned in the course of the Q3 2023 Earnings Name that Tesla would “positively” construct Giga Mexico. It was simply involved in regards to the excessive rate of interest atmosphere on the time:
“No, we’re positively making the manufacturing facility in Mexico. We really feel superb about that. We put a number of effort into completely different places, 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.”
Nonetheless, Trump says he’ll impose tariffs of 200 p.c on automobiles imported from Mexico, which might doubtlessly be a problem for Tesla and would possibly intervene with the purpose of the plant.
Musk mentioned earlier this yr:
“We’re at the moment on pause on Giga Mexico. I believe we have to see simply the place issues stand after the election…Trump has mentioned that he’ll put heavy tariffs on automobiles produced in Mexico, so it doesn’t make sense to take a position loads in Mexico if that’s going to be the case. So we are going to sort of have to see how issues play out politically.”
Tesla would doubtless not use the manufacturing facility for under Mexico and South America. It could improve manufacturing for the US and help deliveries, as effectively.
So this makes issues troublesome, and justifying a brand new manufacturing facility could be a tough argument to make.
In July, Mexico mentioned Tesla by no means registered an important funding software for the manufacturing facility. Raquel Buenrostro, the Secretary of the Economic system, mentioned Tesla had not put any official documentation collectively that it could 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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