Mexico's President Challenges Musk's Pause on Gigafactory Plans

Mexico's President Lopez Obrador dismissed Tesla CEO Elon Musk's remarks about pausing plans for a gigafactory in Mexico due to potential U.S. tariffs if Trump wins the election. Obrador attributed such statements to election rhetoric, arguing that it's not credible and assured that preparations continue in Nuevo Leon.

Mexico's President Andres Manuel Lopez Obrador dismissed Tesla CEO Elon Musk's comments about pausing plans for a gigafactory in Mexico as not serious. He attributed Musk's and Trump's remarks on potential tariffs to election rhetoric. Lopez Obrador emphasized that U.S. consumers benefit from Mexican-made vehicles due to lower costs, adding that Tesla's plans are still on track in Nuevo Leon.

Lopez Obrador, during his daily press conference, questioned Musk's reasoning, arguing that the fiery rhetoric typical of election campaigns should not be taken at face value. He pointed out the significant cost savings for U.S. consumers when purchasing Mexican-imported vehicles, emphasizing the impracticality of producing them domestically at the same price.

Despite the uncertainty highlighted by Musk, Nuevo Leon's government confirmed that preparations for Tesla's gigafactory continue unabated. The state has been building necessary infrastructure and has not received any formal advisories from Tesla about cancelling its plans. The local government assured that groundwork for Tesla and its suppliers is ongoing.