Mexico’s President Says Tesla Building Mexican EV Plant
On Tuesday, Mexican President Andres Manuel Lopez Obrador announced that Tesla will be building a plant south of the border. Confirmation comes following a call with CEO Elon Musk – held on Monday – with promises that the American company would be issuing a series of commitments designed to address regional water scarcity. The alleged plant is said to be located in Monterrey, which has historically struggled to cope with drought.
While there has been no official word from Tesla, López Obrador has already stated that the company would address water shortages in public statements – important considering he previously opposed EV factories being built in the northern state of Nuevo Leon due to prospective water issues.
“There is one commitment that all the water used in the manufacture of electric automobiles will be recycled water,” the president said in a release.
From the Associated Press:
The president said it would be a large investment without giving a dollar amount, and did not specify what the plant would produce. He said it was unclear if it would produce batteries, an industry Mexico desperately wants despite not having any current domestic supply of lithium.
“This is going to mean a considerable investment and many, many jobs,” López Obrador said. “My understanding is that it will be very big.”
Monterrey is highly industrialized and close to the U.S. border, and had long been considered the frontrunner for any Tesla investment.
The factory would become Tesla’s first south of the U.S. border and an essential component of Musk’s plans to expand global manufacturing – which already has new plants being built in Texas and Germany. While there’s always a chance the deal could fall through, Mexico’s president seems incredibly optimistic about the project.
“He was very responsive, understanding our concerns and accepting our proposals,” López Obrador was quoted as saying by Automotive News. “I want to thank Mr. Elon Musk for being very respectful, attentive and understanding of the importance of addressing the problem of water scarcity.”
Tesla’s annual investor day takes place on Wednesday, so there should be a string of important announcements taking place – including the first glimpse of its Gen 3 vehicle platform. According to the Mexican president, the automaker will also be providing details about its arrangement with Mexico and the general scope of the factory.
[Image: Sheila Fitzgerald/Shutterstock]
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A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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"...which already has new plants being built in Texas and Germany"
They are already built, and so is Shanghai. But the expansion never stops.
Perhaps the mythical Model 2 will come from Mexico. And, perhaps there was a backroom deal with the US government to have it qualify for the EV subsidy Tesla lobbied against. This would make the cheapest Tesla cost less than a Corolla.
Like a normal Tesla, but it has a Mexican Radio