MEXICO City, Feb 28 (Reuters) – Tesla Inc (TSLA.O) will construct a brand new meeting plant in northern Mexico, the country’s president introduced on Tuesday, marking a push by the electric automobile maker to broaden operations outside the U.S. President Andres Manuel Lopez Obrador said the whole Tesla firm” was coming to Mexico to build a “very massive” automotive plant, noting that potential funding in batteries was nonetheless pending. He did not reveal what models it will produce. One Mexican official stated the plant would be a Tesla “gigafactory” that could produce the Semi truck, Roadster sports car, and probably other autos. Another official mentioned the plant could produce a form of sport utility car (SUV). The Model Y is Tesla’s finest-promoting SUV. Tesla will probably give details of its plans on Wednesday, Mexico’s authorities stated. Lopez Obrador’s announcement of the plant in the Monterrey metropolitan area dispelled current concerns that he may upend the investment by imposing conditions on the corporate due to problems over a lack of water in the arid border region.
Musk has stated for months that the EV maker will announce a new factory, and he is about to debate growth plans, next-generation car platforms and different matters at an Investor Day” occasion on Wednesday. The company can also be expected to present details of a brand new, cheaper mannequin of car at the occasion. The news is a boost for Mexico, which is working to establish itself as a hub for the so-called nearshoring of investment – capitalizing on geopolitical tensions and provide- chain disruptions caused by the COVID-19 pandemic by luring manufacturing capacity to North America, and away from Asia. Lopez Obrador mentioned Mexico and Tesla had reached agreement after a name with Musk on Monday, following a separate conversation he said the two held late last week. The plant might be in-built Santa Catarina in the greater Monterrey space, said the municipality’s mayor, Jesus Nava, echoing reports which have circulated for weeks. Instagram. In one other video, captioned “10 billion dollars” in bright crimson, Nava stated Tesla’s funding would be 5 times the non-public funding within the municipality over the previous decade.
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