Tesla to open factory in Mexico: report

Plans to build Tesla vehicles in Mexico may be announced in the coming days, despite CEO Elon Musk criticizing electric vehicle rivals for building there as well.

Tesla may be preparing to build electric cars in Mexicoaccording to a new US report, months after CEO Elon Musk criticized rival automakers for doing the same.

News agency Bloomberg has reported tesla is “finalizing plans” to build a new electric car factory in Mexico’s northern Nuevo León region, its third outside the US, after China (Shanghai) and Germany (Berlin).

The new factory, located in the Santa Catarina region of the city of Monterrey, would be located less than 200 km from the nearest US-Mexico border crossing and 640 km from Tesla’s existing factory near Austin, Texas .

Inside the Tesla factory near Berlin.

Tesla CEO Elon Musk reportedly visited the region and met with government officials in October 2022 to discuss the factory.

The electric car maker has already forged a relationship with the local government, establishing a unique fast-track customs lane at one of the region’s border crossings with the US (as reported in july).

The apparent plans to build Tesla vehicles in Mexico represent a shift in stance for the electric car giant, after Musk criticized US rivals Ford and General Motors (GM) for building their electric cars in a country where labor costs they are a fraction of those. in North America and there are fewer restrictions placed on employers regarding the rights of employees.

responding to a Twitter After criticizing GM’s decision to build its new Blazer electric SUV in Mexico, Musk said: “Tesla’s are the most manufactured vehicles in America.”

In a September 2021 cheepMusk criticized a positive Bloomberg In an article about a milestone in the production of Ford’s Mustang Mach-E electric SUV, which is also made in Mexico, Musk said:

“This is written by Ford/UAW [workers’ union] lobbyists, while they build their electric car in Mexico. It’s not obvious how this serves American taxpayers.”

But manufacturing in the region would still make Tesla cars built there eligible for new electric vehicle (EV) subsidies from the US government.

It’s unclear which models Tesla would build at its new factory or when it would open.

Several key suppliers to Tesla’s Texas factory are already based in the Nuevo León region.

Mexico is a center for automobile production, with Kia building vehicles 50 km from Tesla’s potential factory, and Ford, General Motors, Jeep/Ram, Toyota, Volkswagen, Audi, BMW, Mercedes-Benz, Honda, Mazda and Nissan have factories elsewhere. the country.

Cars made in Mexico for Australia include the Audi Q5 and Mercedes-Benz GLB luxury SUVs, the full-size Chevrolet Silverado 1500 pickup, the BMW 3 Series sedan, the BMW 2 Series coupe and the Volkswagen Tiguan Allspace family SUV.

Bloomberg reports that Mexico and Canada recently won a “trade dispute” with the US “over cars shipped across regional borders,” which the news agency says will give automakers more incentive to build cars in the two neighboring countries of the US

Tesla has yet to confirm the report, however Bloomberg states that an announcement may be made in the next few days.

Alex Misoyannis

Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed to Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flipping through car magazines to an early age to grow around performance. vehicles in a car-loving family.

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