{"id":14481,"date":"2023-03-01T16:48:00","date_gmt":"2023-03-01T16:48:00","guid":{"rendered":"https:\/\/www.africa-press.net\/eritrea\/all-news\/tesla-to-build-new-factory-in-mexico"},"modified":"2023-03-01T16:48:00","modified_gmt":"2023-03-01T16:48:00","slug":"tesla-to-build-new-factory-in-mexico","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/eritrea\/all-news\/tesla-to-build-new-factory-in-mexico","title":{"rendered":"Tesla to build new factory in Mexico"},"content":{"rendered":"

Africa-Press – Eritrea. <\/strong><\/span>Mexico President Andres Manuel Lopez Obrador said the plant for the electric car firm would be in Monterrey, which is about a three-hour drive from Texas.<\/p>\n

Tesla is expected to share more in presentation to investors on Wednesday.<\/p>\n

Mexico had previously raised concerns about how water demands from the factory might affect the region.<\/p>\n

But Mr Lopez Obrador said he had won commitments from Tesla boss Elon Musk that had helped ease those worries.<\/p>\n

Mexico is trying to position itself as a winner as tensions between the US and China disrupt traditional supply chains.<\/p>\n

“This will represent a considerable investment and many, many jobs,” Mr Lopez Obrador said at a news conference on Tuesday.<\/p>\n

US President Joe Biden has emphasised made-in-America rules for cars to qualify for new subsidies included in a massive spending plan approved to tackle climate change last year.<\/p>\n

But the rules provide exceptions for Canada and Mexico, which has seen its role in car manufacturing grow as American firms look outside the country to reduce costs.<\/p>\n

This would be Tesla’s third factory outside of the US, after the firm opened plants in China and Germany in recent years.<\/p>\n

Reuters reported the newest Tesla factory represented an initial $1bn investment, which could grow to be $10bn over time.<\/p>\n

Martha Delgado, a Mexican deputy foreign minister, told Milenio Television the investment was worth “in excess of $5 billion” and that the factory would produce about one million vehicles per year.<\/p>\n

Another unnamed Mexican official told Reuters news agency the plant would be a Tesla “gigafactory” that will produce vehicles including their truck and sports car.<\/p>\n

The company did not respond to a request for comment on its latest expansion.<\/p>\n

Tesla, like other carmakers, is anticipating that electric car purchases will grow rapidly in the years ahead as drivers turn to greener modes of transport.<\/p>\n

The confirmation of Tesla’s plans comes just a few weeks after BMW said it would be investing in a factory in Mexico. Ford also manufactures its electric SUV in the country.<\/p>\n

General Motors announced plans to build a plant for electric cars in Mexico last year, prompting the United Auto Workers trades union to describe the decision as a “slap in the face”.<\/p>\n

In Mexico, the investments have been closely watched as a test of the investment climate under Mr Lopez Obrador, a left-wing populist, who was elected in 2018.<\/p>\n

For More News And Analysis About Eritrea<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Eritrea. Mexico President Andres Manuel Lopez Obrador said the plant for the electric car firm would be in Monterrey, which is about a three-hour drive from Texas. Tesla is expected to share more in presentation to investors on Wednesday. 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