Tesla Hesitates on Plans for Mexican Factory Amid Economic Uncertainty and Interest Rates Concerns

Tesla CEO Elon Musk has revealed that the company is hesitant about its plans to establish a factory in Mexico due to uncertainties in the economic outlook. Musk stated that before proceeding with the construction of a plant in northern Mexico, he wants to gain a better understanding of where the economy is headed. He also expressed concerns about the impact of high interest rates on car affordability, stating that if interest rates remain high, it would be more difficult for people to afford Tesla vehicles. Tesla had previously announced its intention to build a large plant in Nuevo León, with an estimated investment of over $5 billion. However, Musk’s concerns about the economic climate have caused him to rethink this expansion. On the same day, the governor of Nuevo León, Samuel García, announced that two Chinese Tesla suppliers, Ningbo Tuopu and Hesai Technology, are planning to invest nearly a billion dollars in the state. The investment would amount to approximately $700 million and $260 million, respectively. These developments highlight the complex decision-making process Tesla is going through as it navigates the current economic landscape.