Last weekend, Tesla CEO Elon Musk appeared in the northern Mexican state of Nuevo León, sparking speculation that Mexico could become a future investment destination for Tesla. Elon Musk wants Tesla to expand to the “extreme” and may announce news of a new factory by the end of this year.
The Mexican newspaper Milenio, which published a photo of Elon Musk standing on an outdoor terrace with Mariana Rodriguez, the first lady of Nuevo León, reported on Oct. 23 that the tech billionaire met with Nuevo León Governor Samuel Garcia and local economic development officials to “analyze the possibility of building a Tesla factory in the region. to analyze the possibility of building a Tesla factory there.”
Citing anonymous sources, the millennium newspaper reported that the officials proposed that Tesla build a production facility in Santa Catarina, near the state capital of Monterrey. Tesla did not immediately respond to a request for comment on the report, and Mexican government officials did not immediately respond to a comment.
Other Mexican media have hinted that talks between Tesla and local officials may focus on establishing a Tesla parts assembly corridor for export in the state or expanding relationships with local parts suppliers. Tesla has a new factory in Austin, Texas, and it would be easy to get parts supplies from northern Mexico.
Bloomberg reported in July that the state of Nuevo León has also created a dedicated lane for Tesla suppliers at a Colombian border bridge checkpoint. Tesla’s suppliers in Mexico include France’s Freya and Germany’s ZF.
“To some analysts, Elon Musk’s visit to Mexico is a sign that commercial agreements are on track, as private visits indicate a high level of interest in the country,” the Infobae news service said.
The Texas-Mexico border region is home to hundreds of auto parts makers, in addition to a large GM plant in Ramos Arizpe, Coahuila, and a sprawling Kia Motors plant outside Monterrey.
Mexican financial newspaper El Economista reported in April that the governor of Nuevo León, Garcia, visited Tesla’s plant in Austin, Texas, to reach an agreement for parts suppliers to use the Columbia Bridge to export to Tesla’s California and Texas plants. Last year, Mexico exported more than 2.7 million vehicles, most of which were sold to the United States.
As the North American auto industry transitions from internal combustion engine vehicles to electric vehicles, Mexico is looking to attract more investment in electric vehicle assembly and components. Ford currently produces the electric Mustang Mach-E at a plant near Mexico City.
