Tesla to build new plant in Mexico

Mexican President Andres Manuel Lopez Obrador announced on Tuesday his country reached an agreement with Tesla Inc to build a new assembly plant in Monterrey in northern Mexico.

Lopez Obrador expressed how this step “will represent a considerable investment and many, many jobs.” Investments are estimated to reach around $1bn in the initial phase only. The Mexican Foreign Minister, Marcelo Ebrard has also applauded the news; tweeting it came as a result of many months of “patient labour.”

Information about what Tesla plans to produce remains in the realm of speculations till the moment. The Mexican government said the company is expected to release more details about the deal on Wednesday.

Lopez Obrador also referred to Mexico’s situation being different from the U.S. in regards to the government’s ability and willingness to provide subsides.

This would be Tesla’s third plant outside the United States and one of the major investments of the current Mexican administration. Despites investments in Mexico’s being held back by Obrador’s efforts aiming at strengthening state control; Mexico recorded in 2022 its highest levels of foreign direct investments in years.