Texas Border Business
Texas Border Business
In March, Tesla (NASDAQ: TSLA) announced plans to build a $5 billion assembly plant near Monterrey to produce a new line of electric vehicles, with production initially slated to start in 2025. However, according to the Milenio Mexican newspaper, Tesla CEO Elon Musk has halted the construction of this gigafactory in Nuevo León, Mexico, until after the US presidential elections on November 5, 2024.
Tesla CEO Elon Musk said Tuesday during the electric vehicle maker’s earnings call that the company’s plans to build a new gigafactory in Mexico are on pause until after the U.S. presidential election due to former President Trump’s pledge to slap tariffs on cars made in Mexico.
Economic concerns and the impact of high U.S. interest rates on car sales have been cited as reasons for the delay. Although the project was officially announced in March 2023 and expected to proceed swiftly, it has encountered several obstacles. Tesla has reiterated that while the factory is still planned, its timing will depend on the economy’s recovery and other factors.
Despite the challenges, local Mexican officials are optimistic about the project’s future. Iván Rivas, Nuevo León’s Secretary of Economy, has confirmed that the factory has the necessary permits and that infrastructure improvements are actively underway. However, the exact start date for construction remains a question mark.
To sum up, the Tesla Gigafactory in Mexico is still in the pipeline, but its future is far from certain, with economic conditions and political factors playing a significant role.
