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, 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 deliver 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 remains to be planning on constructing.
Musk mentioned through 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 unit in Mexico. We really feel excellent about that. We put numerous effort into taking a look at totally different areas, 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.”
Nevertheless, Trump says he’ll impose tariffs of 200 % on automobiles imported from Mexico, which might doubtlessly be a problem for Tesla and may intrude with the purpose of the plant.
Musk mentioned 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 mentioned 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 are going to type of have to see how issues play out politically.”
Tesla would seemingly not use the manufacturing unit for less than Mexico and South America. It might enhance manufacturing for america and assist deliveries, as nicely.
So this makes issues tough, and justifying a brand new manufacturing unit could be a tough argument to make.
In July, Mexico mentioned Tesla by no means registered an important funding utility for the manufacturing unit. Raquel Buenrostro, the Secretary of the Economic system, mentioned 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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