López Obrador announces that Tesla will set up a factory in Mexico

MEXICO CITY (AP) — President Andrés Manuel López Obrador announced Tuesday that Tesla will set up a factory in northern Mexico and stressed that it would mean a considerable investment, but said details of the operation will be announced by the automaker. of electric vehicles. .

In his morning briefing, the president said Tesla Chief Executive Elon Musk informed him in a video call that the automaker will be moving to the northern city of Monterrey, capital of the industrial state. of Nuevo Leon.

“It is already understood that they are going to dedicate the investment to Mexico,” López Obrador said, referring to what he had discussed with Musk the day before and clarified that there is a “series of commitments” to deal with the shortage problem. of water in Monterrey in which Tesla will participate.

Last week, the president said he would not allow the company to establish itself in Nuevo León, alleging the water shortage problems facing the semi-desert state, an argument that has been refuted. by its governor, Samuel García, who indicated that they would work with Tesla to use only treated water and not intended for human consumption.

After the announcement, the Governor of Nuevo León posted a short message on Twitter that read “Mexico Won, NL Won, WE ALL WIN!”

López Obrador said Musk was “very receptive” to concerns raised by Mexican authorities and accepted his government’s proposals.

“It will mean considerable investment and many jobs” for Mexico, said López Obrador, adding that the details of the operation will be announced by the manufacturer of electric vehicles.

López Obrador announced that Mexico would not give subsidies to Tesla for the production of its vehicles like those it receives in the United States. “Without these subsidies, Mexico’s comparative advantages are unique and we agree that Mexico’s main resource is the quality of its workers,” he said.

The director of economic analysis at local financial group Banco Base, Gabriela Siller, told The Associated Press that Tesla’s entry into Mexico will mean a nearly 30% increase in foreign direct investment entering the country. last year and the growth of exports and the automotive sector, which covers a third of Mexico’s foreign sales.

The announcement comes after weeks of controversy and various versions that emerged after the Mexican leader announced he would hold a phone conversation with Musk.

The factory in Mexico would be the third Tesla has set up outside the US market and would add to the factories it has in Shanghai and near Berlin.