Mexico

Tesla in Talks for New Facility in Mexico, but No Deal Yet, Says Local Official

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Tesla and Mexico are in talks to build a new facility in the country, a Nuevo León official said, stressing no deal has yet been reached. The state is also trying to attract Tesla suppliers.

In late 2022, with hints from officials in Nuevo León, Mexico, rumors began circulating that Tesla and the state were close to signing a deal to build an assembly plant. Elon Musk did visit the state in October last year, where he met with government officials, although the details of his visit were not disclosed.

Emmanuel Loo, the deputy secretary of economic development for Nuevo León, told Nikkei Asia that the state and Tesla have not yet reached an agreement to build a factory in the area. “No, we have not” reached an agreement, he said, adding that he did not know if a decision would be made this year.

In an interview with Nikkei, Loo also touted Nuevo León as a great place to do business, saying other companies are also looking at the state as an investment. “If companies are considering investment in Mexico, I think Nuevo León is the best place,” he added.


Among the many companies, Nuevo León is also looking to attract Tesla suppliers, given the state's proximity to the US border, Loo said. Since Nuevo León is located across the border from Texas, this state is in a great location for suppliers who can deliver products to Giga Texas. Last year, Nuevo León set up a special driveway at the border for Tesla suppliers.


“We started working on how we can help [Tesla] and make their logistics faster and more efficient,” Loo said.

He aims to encourage suppliers to open their facilities in Nuevo León by offering quick access to the US as well as lower labor and land costs. The state is also building dedicated lanes for other companies.

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

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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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