Tesla Receives Permission to Build Giga Mexico

Image: Tesla

• Tesla receives permission from the government to begin construction of Giga Mexico.
• Now, the company can begin implementing the plan at any time.

Tesla has received all permits to begin construction of its factory in Mexico. This means that Tesla could begin work on the first phase of Giga Mexico at any time. However, at the moment, it is unclear exactly when the manufacturer will begin to implement the plan since the difficult economic situation has made its own adjustments.

“They already have all the federal and state permits,” Ivan Rivas, the economy minister of the Mexican state of Nuevo León, told local daily Milenio. “They provided us with everything we needed to start construction so that we could guarantee that Tesla would arrive in Nuevo Leon,” he said.

Previously, during the Q3 2023 Earnings Call, Elon Musk said that Tesla would not rush to build in Mexico. He emphasized that first, the company wants to get a feel for what the global economy looks like. However, Tesla's arrival in Mexico is already a foregone conclusion, and right now the only question is when it will happen. Musk said:

“In Mexico, we're laying the groundwork to begin construction and doing all the long lead items. But I think we want to just get a sense of what the global economy is like before we go full tilt on the Mexico factory. I'm worried about the high-interest rate environment that we're in. I just can't emphasize this enough that the vast majority of people buying a car is about the monthly payment. And as interest rates rise, the proportion of that monthly payment that is interest increases naturally.

“We're definitely making the factory in Mexico. We feel very good about that. We put a lot of effort into looking at different locations, and we feel very good about that location, and we are going to build a factory there, and it's going to be great. The question is really just one of timing.”

Tesla announced the construction of a factory in Mexico in early March. Then the company was talking about investments in the amount of $5 billion, and a little later about the production capacity of one million electric vehicles per year. As a result, initial preparatory work was carried out at the site.

At the end of September, Tesla received the first environmental permits for the plant. Tesla must meet certain requirements and now has 26 months to prepare the site and begin construction of the factory. Thus, there is a certain period of time during which Tesla can still wait before starting construction.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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