President of Mexico, Andres Manuel Lopez Obrador Expresses His Opinion on Elon Musk’s Decision halt construction of the Gigafactory in Mexico. The president downplayed Tesla’s decision because These companies “don’t produce, they only speculate”AMLO added that the idea of stopping car production in the country because of Trump’s proposed tariffs should not be taken seriously.
During his traditional morning conference, Lopez Obrador downplayed the issue of Tesla’s Gigafactory in Mexico. AMLO pointed out that Such statements are the result of the US elections.“This is done in a campaign, and in campaigns there is a lot of passion, a lot of rhetoric, too much talk,” Lopez Obrador said.
Required He questioned Elon Musk’s decision and did not rule out that he already has another business plan. Lopez Obrador noted that companies like Tesla do not produce, but rather speculate. “They publish news and do very well on the stock markets, they raise stock prices, and production fades into the background,” the Mexican president said.
Elon Musk confirmed this at a conference call with shareholders Tesla which put the Gigafactory’s development in Mexico on hold. The CEO noted that I’ll wait until November to find out the election results United States. Musk believes that if Trump wins, the new administration will raise tariffs on cars imported from other countries.
Given this, President Lopez Obrador said he cannot take Trump seriously because Tesla Will Not Be Able to Produce Cars in the US“This is not because they do not have the technological capacity, capital, experience, but because the cost of their production is very high. This will be reflected in their consumers,” he noted.
Why Tesla Won’t Build a Gigafactory in Mexico (Yet)
The decision to suspend construction of the Gigafactory in Mexico is based on Donald Trump’s campaign speechDuring a rally in Ohio, the Republican candidate said that will impose 100% duties on cars produced in Mexico. Trump was not referring to Tesla or all cars, but to a specific brand: BID.
In February, the Chinese company announced it would build an electric vehicle factory in Mexico to export to the United States and Latin America. Unlike Tesla, BYD hits the accelerator to get procedures and set up a factory in the country. The company wants to expand its presence in Mexico and Latin America to dominate electric vehicle sales.
Trump disagrees and has warned China that They won’t be allowed to build factories to produce “monster cars” in Mexico.“We’re going to put a 100 percent tariff on every car that crosses the line, and they won’t be able to sell those cars if I’m elected president,” he said. The former president added that if he loses the election, “it’s going to be a bloodbath” for the U.S. auto industry.
At the moment, Mexico is the largest importer of automobiles and auto parts to the United States.. According to the U.S. Department of Commerce, imports from Mexico rose 37.7% in 2022, equivalent to $149,946 million. The Mexico-United States-Canada Free Trade Agreement (T-MEC) is key for companies like BMW, which will build a plant in San Luis Potosi.
Mexico’s president hopes Tesla will reconsider its decision once the elections are over and a new government is formed.
Source: Hiper Textual
I’m Blaine Morgan, an experienced journalist and writer with over 8 years of experience in the tech industry. My expertise lies in writing about technology news and trends, covering everything from cutting-edge gadgets to emerging software developments. I’ve written for several leading publications including Gadget Onus where I am an author.
