2023-10-19 04:29:00
Elon Musk said Tesla Inc. still planning one vehicle factory in Monterrey, Mexicobut is not ready to go “full speed” in its construction, given the state of the global economy.
He electric vehicle manufacturer is still “laying the foundation” for the factory, Musk said Wednesday on the company’s third-quarter earnings conference call. The initial phase of the plant will begin early next year, said Musk, who is known for being vague in his time estimates.
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The comments come following weeks of speculation regarding whether the plant, first announced in March, will actually be built. Nuevo León, the northern state where the factory is planned to be built, said earlier this month that Tesla had asked the state to improve electrical, water and transportation infrastructure before starting construction planned for this year.
The plant, which is expected to require an investment of regarding $10 billion, has been touted by both the state and federal governments as a sign that Mexico is attracting large companies as part of its nearshoring appeal. Tesla executives and local officials have denied reports that the plant is being canceled.
“This article is one of many I have seen that comments incorrectly and randomly regarding our plans in Mexico,” said Rohan Patel, senior global director of public policy and business development at Tesla, via a post on X in early this month. “We will continue to move forward with local, state and federal governments and greatly appreciate their efforts to enable the necessary permitting and infrastructure.”
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The state of Nuevo León will provide the company with 2.5 billion pesos (US$136 million) in incentives, which will be allocated to public infrastructure, Reforma newspaper reported last week, citing Governor Samuel García. At the time, García said Tesla had chosen Nuevo León, Mexico’s industrial hub near the Texas border, because of its lower costs, workforce availability and presence of key parts suppliers.
The Musk-led electric vehicle maker rose in extended trading on news that the long-awaited Cybertruck will finally hit the market next month.
Translated by Paola Torre.
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