In a recent announcement that has surprised many, the Governor of Nuevo Leon, Samuel Garcia, revealed that Tesla and its suppliers will invest a whopping $15 billion in Gigafactory Mexico over the next two years. This is a significant leap from the initial $5 billion figure floated earlier this year. What’s more, the governor implied that this “enormous amount” will necessitate additional state investments in infrastructure.
Tesla has stated that Mexico will play an important role in Tesla’s international expansion
Tesla’s decision to invest more than initially planned raises questions about the company’s long-term strategy for its Mexican facility. The increase comes after a recent announcement by Tesla to shift the initial build location for its next-generation electric vehicles from Mexico to Austin, Texas. However, the massive investment suggests that Mexico will still play an integral role in the automaker’s international expansion plans.
The revised investment figure could imply several things for Nuevo Leon and Tesla. For the state, the investment signals a need to ramp up spending on highways and public works to support the incoming industrial activity. This could be a win-win for local communities, potentially providing an economic boost and job creation.
For Tesla, the decision suggests that Gigafactory Mexico is still a key player in the company’s future. However, it does draw attention to the logistical challenges that Tesla seems to be grappling with, particularly in enticing its top engineers to relocate to Mexico for the project. Walter Isaacson, in his recent biography of Elon Musk, pointed out that convincing engineers to move south of the border “is never going to happen,” which may be part of the reason behind the initial production shift to Texas.
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(Via)
