Tesla plans to establish new factory in Mexico to expand its presence
Category: #business  By Mateen Dalal  Date: 2023-03-02
  • share
  • Twitter
  • Facebook
  • LinkedIn

Tesla plans to establish new factory in Mexico to expand its presence

Tesla, the prominent American electric carmaker, has reportedly planned to open up a new factory in Mexico, following other automakers in building their presence in the south of the U.S. border.
Mexico's President, Andres Manuel Lopez Obrador, claimed that the electric car company's facility would be situated in Monterrey, approximately a three-hour trip from Texas.
Sources also confirm that Tesla is likely to reveal more insights during its investor presentation on Wednesday.
Mexico had previously voiced concerns regarding the regional impacts of the facility's water requirements.
However, Lopez Obrador asserted that Elon Musk, the CEO of Tesla, had provided assurances that allayed his doubts.
Mexico is trying to position itself as a leader while the U.S.-China tensions threaten existing supply routes.
U.S. President Biden has underlined the need for made-in-America rules, specifically for cars in order to qualify for the additional subsidies contained in a significant spending plan agreed upon last year to combat climate change.
But the regulations make an exception for Mexico and Canada, whose contribution to the auto industry has increased as American companies are going to other countries for cost-saving measures.
Tesla has constructed facilities in Germany and China, making this the company's third factory outside of the United States.
According to sources, the new Tesla factory required an initial investment of $1 billion, which might increase to $10 billion over time.
Mexican Deputy Foreign Minister, Martha Delgado stated that the financing was more than $5 billion and the proposed facility would produce roughly one million automobiles per year.
Another anonymous Mexican source claimed the facility would be a Tesla gigafactory, producing cars such as the company's truck and sports car.
The corporation did not shed light on its new expansion.
Tesla, like other automakers, believes that the market for electric cars will expand quickly as consumers switch to more environmentally friendly modes of transportation over the upcoming years.
Only a few weeks ago, BMW announced that it will be investing in a facility in Mexico. Tesla has also now confirmed its plans. In addition, Ford also makes its electric SUV in the country.
Source credit: https://www.bbc.com/news/business-64803467

About Author

Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

Read More>>

More News By Mateen Dalal

Unicorn fintech startup Slice secures 5% stake in North East bank
Unicorn fintech startup Slice secures 5% stake in North East bank
By Mateen Dalal

Slice, the well-known Indian unicorn fintech startup, has reportedly secured a 5% stake in the India...

U.K.’s inflation rate falls for third consecutive month; hits 10.1%
U.K.’s inflation rate falls for third consecutive month; hits 10.1%
By Mateen Dalal

In January, the inflation rate in the U.K. reportedly fell for the third month straight to 10.1%, fa...

OpenAI to launch software tool ‘imperfect’ to identify AI-generated text
OpenAI to launch software tool ‘imperfect’ to identify AI-generated text
By Mateen Dalal

OpenAI, the American AI company and maker of the prominent chatbot, ChatGPT, has reportedly launched...