After months of uncertainty regarding Tesla’s plans in Mexico, Elon Musk announced on July 23 that the construction of the Gigafactory in Santa Catarina, Nuevo León, will be paused. This decision will remain in effect until after the upcoming elections in the United States, primarily due to concerns raised by Republican candidate Donald Trump, who has threatened to impose tariffs on vehicles manufactured in Mexico. If implemented, these tariffs could significantly impact Tesla’s operations.
This announcement came amid rumors suggesting that Musk had canceled the New León plant, which was originally touted with great fanfare by Governor Samuel García Sepúlveda in March 2023. Just in April, the state’s Secretary of Economy, Iván Rivas, reassured the public that the project was still on track, although he could not confirm when construction would begin.
The news caught Governor García off guard as he is currently on vacation with his family in Turkey. A formal statement has yet to be released from him regarding this development. However, President Andrés Manuel López Obrador did address the matter in a press conference, downplaying Musk’s decision. He mentioned that he had sent a letter to Donald Trump urging him to reconsider his proposals on tariffs and immigration, to allow Tesla to continue its plans in Mexico.
López Obrador commented, “This is a decision made by the company to wait before investing in the automotive plant in Monterrey. They maintain that because President Trump mentioned that cars produced in Mexico would not be sold in the U.S., they want to wait to see if the election outcomes will affect them, especially in the case that Trump wins.”
Following the announcement to halt construction, Marko Cortés Mendoza, the president of the National Action Party (PAN), indirectly criticized the Nuevo León government and suggested that Musk should consider relocating the factory to states governed by his party, highlighting Aguascalientes, Guanajuato, and Querétaro as better options for investment.
Cortés stated on social media, “It’s a shame to lose such a significant investment as Tesla, which was already secured for Mexico. Elon Musk should think about relocating to well-governed states like Aguascalientes, Guanajuato, or Querétaro, which offer great investment certainty and job creation.” However, his comments drew backlash from users who accused him of misinforming the public about the reasons for Musk’s decision. They pointed out that this decision was primarily influenced by Trump’s tariff threats, not by the local government’s performance.
Critics on social media emphasized the reality of the situation. One user responded, “Musk’s decision to halt investment in the plant in Nuevo León is due to the candidate he supports, who has announced that tariffs will be imposed on cars produced outside the U.S. This issue is the same no matter where Musk decides to build the factory.”
This situation has highlighted the complexities of international business operations, especially when intertwined with political events. The future of Tesla’s planned factory in Mexico now remains uncertain as all eyes turn to the upcoming U.S. elections and their potential implications for trade and investment.
Image and News Source: https://www.infobae.com/mexico/2024/07/24/critican-a-marko-cortes-por-pedirle-a-elon-musk-que-construya-fabricas-de-tesla-en-estados-gobernados-por-el-pan/
