Mexico: Elon Musk halts the construction of his Tesla factory

by time news

2024-07-26 22:11:25

The creator of Tesla, Elon Musk, decided to delay the construction of his factory in Nuevo León until the presidential elections in the United States, which will take place on November 5.

“A delay” in construction

To talk about this topic, Channel E He contacted the Mexican journalist, Enrique Hernandezwho said that he had indeed declared “delay in building a factory in Nuevo León“From Tesla, the company led by Elon Musk.

According to the researcher, this region is home to many large companies that can provide essential inputs for the production of Tesla electric vehicles, and is part of the trade agreement between the United States, Mexico and Canada.

What is the economic impact of this announcement?

The decision of the CEO has had a noticeable effect, evidenced in the fall of Tesla shares and the loss of the attractiveness that Mexico has received as an investment destination, especially due to the expected arrival of Tesla.“, he said Hernández. However, Mexico is still relevant in Tesla’s supply chain because the manufacturer of Tesla’s car chips is located in Monterrey, Nuevo León, and “at least 20 to 25 additional suppliers in the area” he added.

Chinese car brands arriving in Mexico

On the other hand, the interviewee said that brands of electric cars are entering the Mexican market, especially from China. “In the last 12 and 15 months, 10 Chinese brands have arrived, offering electric and hybrid cars at lower prices than Tesla’s.“, he assured.

In that sense, the journalist is convinced that the prices of Chinese cars “They are around 300,000 pesos compared to the million that Tesla costs“. However, “None of these Chinese cars are manufactured or assembled in Mexico, which has increased the work at the ports and, in some cases, caused energy problems for transporting these cars.” he added.

Expansion of the car industry

When asked about the Chinese companies that arrived in Mexico, the reporter said that the assembly company ID Vico “exploring investments“to serve not only the Mexican market, but also Latin America. And I add: “Given that the adoption of electric cars in Mexico is low, the supply of more electric cars could represent a great opportunity, especially in a country with a population of about 120 million and a middle class that is growing rapidly. buying is increasing.“.

To finish, Hernández said: “The auto industry in Mexico continues to expand, driven by high demand for vehicles in the United States“.

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