Tesla will install a Gigafactory in Mexico, AMLO confirmed a million-dollar investment

Tesla Mexico 1

After a series of speculations about in which state of the Mexican Republic the Tesla plant for the manufacture of electric vehicles would be installed, it was reported that the entity that will receive Elon Musk‘s million-dollar investment is Nuevo León, in the municipality of Monterrey.

This was announced by President Andrés Manuel López Obrador in the morning conference on February 28, after having had a couple of virtual meetings with the magnate Elon MuskThe first was on the night of Friday the 24th from Chetumal, while the second was three days later.“We spoke yesterday with Elon Musk, the head of Tesla. There is already an understanding. Yes, they are going to dedicate the investment in Mexico and the Monterrey plant is going to be established”

However, the federal president warned that this Gigafactory will be installed with “a series of commitments ” due to the water crisis suffered by the state governed by Samuel García, without detailing what they consist of. Despite this, López Obrador said he was satisfied with the million-dollar investment that the South African-American businessman will make in Mexican territory.

“We reached an agreement to think about the medium and long term. Are good news. The complete Tesla company is coming. The matter of the batteries was pending, but the entire automotive plant, which is very large (will come)”, added the man from Tabasco, at the same time that he ruled out the delivery of subsidies for batteries and semiconductors.

The official announcement is expected to take place on Wednesday, March 1, when Tesla‘s Investor Day takes place in Austin, Texas. And it is that so far, neither the tycoon Elon Musk nor the American company has disclosed the investment that will be made in Mexico ( it is estimated that it could be around USD 10 billion).

The person who did speak out in this regard was the state president of Nuevo León, Samuel García, who through his Twitter account celebrated the arrival of the electric vehicle plant in the city of Monterrey. “ Mexico won, NL won, WE ALL WIN!”, commented the emecista governor.

“Well, very happy. Thank you very much to the President. And thanks to Elon Musk for the trust. Now Nuevo León, to ‘pull’ twice as much”, García Sepúlveda later commented through a story on his Instagram account.

It should be remembered that although Nuevo León was one of the main candidates for the installation of the Tesla plant, the scarcity of water in the entity led to the discussion of its viability. However, Samuel García reiterated his intentions and assured that the water resources that would be used in the Gigafactory would not be for human consumption. “The one they use is treated and it is minimal,” he said at the time.

In this sense, President López Obrador assured that Elon Musk understood the need to address the water crisis in the northern state, so one of the first agreed commitments has to do with the use of recycled water throughout the manufacturing process of electric cars.

This new plant not only strengthened foreign investment in the country but also contributed to the generation of more jobs. “This also leads to an increase in the wages of workers,” said the federal president.

Since Elon Musk was captured in Neolonian territory last October, the possibility of Tesla arriving in Mexico began to be discussed. For this reason, several states of the Republic showed interest in the US company, such as San Luis Potosí, Coahuila, Hidalgo and the State of Mexico -these last two entities due to their proximity to the Felipe Ángeles International Airport (AIFA).