Tesla could begin producing autos in Mexico next year -Mexican official

MEXICO CITY (Reuters) – Tesla Inc could begin producing its first cars in Mexico next year, with the electric vehicle maker close to receiving its final permits allowing factory construction to begin in Nuevo Leon near the U.S.-Mexico border, the state’s governor said on Monday.

“They are waiting for the final permits … once that’s done, they can start, hopefully this very month, in March,” Samuel Garcia, Nuevo Leon governor, said this in an interview

“I think by next year, in 2024, there will be the first autos.”

A request for comment was not answered by the company immediately.

Elon Musk, Tesla’s Chief Executive, announced that the company, which is based in Austin, Texas, had made the decision to invest. “gigafactory” With plans to create a “next gen vehicle.”

Mexican officials stated that this factory would be the largest in the world to make electric vehicles. The investment was $5 billion.

Garcia indicated that future phases may include the production of components like chips and batteries.

“That’s why they bought a very large plot of land,” He concluded.

According to Santa Catarina’s mayor, it covers several thousand acres.

Garcia stated that the investment would be an act of an “anchor” attracting Tesla suppliers, and that the green light given to Tesla by Mexican President Andres Manuel Lopez Obrador – after the latter had expressed concerns over scarcity of water – sent a positive signal to other potential investors.

“It’s like a kind of guide, that when they want to come set up here, it’s very important they follow the law,” He said that he had already sent Lopez Obrador technical notes about state’s water supply.

“The president, by authorizing and backing Tesla, sent a message to the world that they should come to Mexico.”

(Reporting by Daina Solomon in Mexico City; Editing By Matthew Lewis