Rumors have been circulating for at least a couple months, but confirmed now by President Andres Manuel Lopez Obrador: Tesla is set to build a brand new plant in Monterrey, Mexico. This is a huge boost for Mexico, as it's trying to establish itself as a hub for investment by bringing manufacturing capacity to North America and away from Asia, thanks to geopolitical tensions and supply chain disruptions caused by the COVID-19 pandemic.
Lopez Obrador revealed that he had a call with Elon Musk on Monday, and they came to an agreement that will create lots of jobs and bring in a considerable investment. The President had previously expressed concerns over water shortages, but Musk was receptive and has accepted Mexico's proposals.
This investment is a big test for Mexico's President, who has a reputation for being a bit of a resource nationalist. Some companies have been unsettled by his efforts to strengthen state control of the energy market at the expense of private capital. But with Mexico receiving its highest foreign direct investment inflows for years in 2022, it's clear that the country's lower-cost and skilled workforce is making it a global center for the car industry.
We don't know all the details just yet, but Lopez Obrador said Tesla will likely give us more information tomorrow. It's all happening during Musk's "Investor Day," where he'll outline his "Master Plan Part Three." (source: yahoo finance)
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submitted by /u/OliveInvestor
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