Mexico's President Calls Musk's Gigafactory Pause 'Not Serious'

Mexico's President Lopez Obrador dismissed Tesla CEO Elon Musk's statement about pausing plans for a gigafactory in Mexico. Musk had cited potential tariffs from a Trump administration as a reason. Obrador attributed the remarks to campaign rhetoric and emphasized the cost benefits of producing vehicles in Mexico.

Mexico's President Andres Manuel Lopez Obrador on Wednesday rebutted Tesla CEO Elon Musk's remarks about halting plans for a gigafactory in the country. Musk had said that Tesla would reassess its investment after the U.S. presidential election, citing potential tariffs under a Trump administration.

Lopez Obrador dismissed the comments as 'not serious,' attributing them to campaign rhetoric. He pointed out that Republican candidate Donald Trump, in his acceptance speech, proposed 100% to 200% tariffs on Mexican-made cars to make them unsellable in the U.S.

Lopez Obrador argued that U.S. consumers benefit from lower-cost Mexican imports, saving $10,000 to $15,000 per vehicle. He suggested that such companies often engage in speculation to enhance their stock value rather than actual production.

(With inputs from agencies.)