Tesla Evaluates Nuevo Leon, Hidalgo for New Plant in Mexico

Mexican President Andrés Manuel López Obrador will meet Elon Musk, CEO, Tesla, to discuss the company’s plan to install a new plant in Mexico, according to Marcelo Ebrard, Minister of Foreign Affairs.

After participating in a meeting with the Business Coordinating Council (CCE), Ebrard said that the company is looking to assemble a full cluster in Mexico. The automaker is said to be considering Hidalgo and Nuevo Leon, with the latter being a strong contender due to its proximity to Texas. However, Hidalgo offers lower costs and closeness to the Felipe Ángeles International Airport, which could aid logistics for the production of Tesla vehicles.

Ebrard did not disclose if a state was chosen, stating that it would be addressed in the call with Musk. “This issue will be discussed in that call and then we will know, but the important thing is that very soon we will have confirmation from this company, which is so important and is very linked to electromobility,” says Ebradr, according to Cluster Industrial.

However, Ebrard did emphasize the importance of having confirmation of Tesla's decision, given its plans to increase production to 20 million vehicles by 2023. After meeting with two representatives from Tesla, Ebrard wrote on Twitter that more good news will be coming soon. 

He also addressed concerns about the impact of electricity supply on investment projects as nearshoring grows, stating that a working group has already been established with the Federal Electricity Commission (CFE) to tackle this issue.

Mexico’s Automotive Industry Pushing Towards Electromobility
This announcement reflects the automotive industry’s aim to increase electromobility in Mexico. BMW, for example, is set to invest around US$866 million in implementing its latest electric platform, the “Neue Klasse,” at its San Luis Potosi plant. This platform is part of the company’s efforts to increase EV production and meet the growing demand for sustainable mobility solutions, as reported by MBN. 

According to Milan Nedeljković, Member of the Board of Management of Production, BMW AG, the German carmaker will be reconfiguring its production network to prioritize electric mobility.  The investment in the San Luis Potosi plant is expected to create 1,000 new jobs.