- Tesla promised to open a Gigafactory in Mexico back in 2023 that was rumored to come online as early as Q1 2025.
- CEO Elon Musk said it "doesn’t make sense to invest" until after the U.S. election due to threats of tariffs and pressed pause.
- Mexico wants answers on what to expect next.
When Tesla officially announced a new Gigafactory in Mexico last March, it was seen as a major win for everyone. Locals would have more jobs, and Tesla would have a source of more affordable labor to build its cars. But here we are, 20 months later, and there's still no Gigafactory in Nuevo Leon.
So what's the deal? That's what Mexico's Economy Minister, Marcelo Ebrard, wants to know. The government of Mexico is growing impatient and Ebrard is looking to CEO Elon Musk for answers.
"I'm going to set up a meeting with [Musk] soon so that he tells me exactly what he's thinking and see what we can do so this project moves forward," said Ebrard in an interview with local broadcaster Radio Formula, per USA Today and other outlets.
Gigafactory Mexico was supposed to be a slam dunk. The automaker originally expected to move on it at Shanghai speeds, beginning construction by the end of 2024 and completing it in about a year's time. It got the permits, the clearance, and the blessing from local officials. In fact, it was believed that cars could start rolling off the production line by Q1 2025. Then...nothing.
A few months later Musk, who had just endorsed now president-elect Donald Trump, revealed that Tesla was pressing pause on Giga Mexico until after the results of the U.S. presidential election:
“I think we need to see just where things stand after the election,” said Musk, adding: "Trump has said that he’ll put heavy tariffs on vehicles produced in Mexico. So it doesn’t make sense to invest a lot in Mexico if that is going to be the case. We kind of need to see where things play out politically."
Given that the outcome of the presidential election has been decided and Trump's pledge to impose tariffs, it seems unlikely that Tesla will pursue a continued investment into Gigafactory Mexico. Plus, let's be honest, Tesla has already made it clear that its production plans have changed. Not only has it backed out of building a $25,000 mass-market EV (Musk called it "silly" and "pointless"), but its Robotaxi product is set to roll off lines at Giga Texas instead.
Ebrard's comments seem to imply that Mexico still sees a path forward. It's clear that Mexican officials are tired of waiting, though. And who can blame them? The automotive sector makes up 3.6% of Mexico's total Gross Domestic Product, and with the threat of high tariffs looming—plus Musk's cozy ties with Trump—a little bit of influence could go a long way.
Contact the author: rob.stumpf@insideevs.com
