Elon Musk Delays Tesla’s Mexico Investment Until Post-US Election

Elon Musk has announced that Tesla’s investment in Mexico will be put on hold until after the United States presidential election on November 5, 2024. This decision comes amid concerns over potential tariffs on vehicles produced in Mexico, as proposed by former President Donald Trump.

“I think we need to see what happens with the election. Trump has said he will impose tariffs on vehicles produced in Mexico. So it does not make sense to invest heavily in Mexico if that is going to happen,” Musk stated during a teleconference with analysts and media. 

Previously, Tesla had announced plans to establish a vehicle assembly plant in Nuevo Leon, Mexico, with production slated to begin in 2026. The initiative was part of Tesla's broader expansion strategy and had already seen considerable support from Mexican government incentives. 

The construction of the Gigafactory in the state of Monterrey had already faced delays.Initially announced in March 2023, the project encountered a setback by the end of the year, attributed to high-interest rates. Despite this, the state government of Nuevo Leon, where Monterrey is located, had confirmed that construction would commence in March 2024.

Musk highlighted that Tesla is focusing on increasing production at its existing facilities. He added, “We are increasing our production at our current factories, and future products like the robotaxi or the humanoid robot named Optimus will be produced at our Texas plant.”