Tesla CEO Elon Musk confirmed on Wednesday that the American electric car maker will build a plant in northern Mexico. The Mexican government announced the project on Tuesday and said Tesla planned to invest about $5 billion in total.
Mexican President Andres Manuel López Obrador speaks during a morning conference at the National Palace in Mexico City, Mexico on February 28, 2023. López Obrador has confirmed that Tesla will set up an electric vehicle plant in the country’s northern city of Monterrey after his call with mogul Elon Musk and months of political wrestling to determine its location.
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Elon Musk did not confirm the amount, but announced during an investor presentation that the group’s next “megafactory” would be installed near Monterrey. Located just over 200 km from the US border, the city is one of Mexico’s economic and industrial engines.
“It will mean huge investments and many, many jobs,” Mexican President Andres Manuel López Obrador said Tuesday. The US group is seeking to address water scarcity issues in the region, which suffered a severe drought last year, he said.
Not a move
The Tesla boss, who spoke on many topics on Wednesday, did not mention this aspect. On the other hand, he emphasized that the construction of the plant in Mexico was “in addition to all other plants”.
“To be clear, this is not about moving (production) from place to place, but about increasing our global production,” he said. In addition to two factories that currently produce cars in the US, California and Texas, the company has “mega-factories” in Germany and China.
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