Tesla (TSLA, Financial) initially announced plans to build a "Gigafactory" in Mexico in March 2023, aiming for a rapid completion similar to its Shanghai facility. However, as of now, the project has not materialized. By the end of 2023, Tesla confirmed that global economic uncertainties have prompted a temporary slowdown of the project. CEO Elon Musk reassured that the project would continue, with long-term procurement underway, though its timeline would hinge on economic recovery assessments.
The electric carmaker has shown a preference for investing in Texas instead. Previously, media speculated that Tesla's delay in the Mexican project might be influenced by the U.S. presidential election, especially with Donald Trump's discussions about imposing high tariffs on Mexico. Musk's support for Trump's campaign further signaled potential political influences.
This summer, despite the Mexican local government's investment in infrastructure for the Nuevo Leon factory, Tesla officially paused the project. Mexico's Economic Minister, Marcelo Ebrard, expressed a desire to meet Musk to explore ways to advance the project under Trump's potential presidency. Ebrard remains optimistic about the project's feasibility.
However, Tesla has revised its production strategies. Initially, the Mexican factory was planned to manufacture new affordable models using Tesla's "unboxed" manufacturing process. Now, Tesla intends to produce autonomous taxis at its Texas factory using the same platform, foregoing plans for other affordable models.
