MEXICO CITY (Reuters) -Mexico’s economy chief will try to meet soon with Tesla’s chief executive Elon Musk to determine his plans for an electric car factory in northern Mexico, he told local radio on Thursday, part of a push to grow the country’s key carmaking sector.
Economy Minister Marcelo Ebrard is a former foreign minister and veteran political operator, and reviving plans for a so-called Tesla gigafactory in Mexico’s Nuevo Leon state would mark a major early victory for the government of President Claudia Sheinbaum, who took office last month.
U.S.-based Tesla is the world’s top maker of electric vehicles.
“I’m going to set up a meeting with (Musk) soon so that he tells me exactly what he’s thinking and see what we can do so this project moves forward,” Ebrard told local radio broadcaster Radio Formula.
Last April, Tesla announced that it will use its existing factories to build new and more affordable vehicles, leaving investments in potential new factories, including in Mexico, unlikely in the near term.
U.S. President-elect Donald Trump’s victory in Tuesday’s election also adds new complications to the plans for Mexico, possibly shifting the plant to the United States.
During his first term as president, Trump often pressured U.S. companies to maximize their domestic manufacturing operations over overseas plants.
As a candidate, Trump said he would impose tariffs of 200% or more on vehicles imported from Mexico.
Earlier this year, Reuters reported that Tesla had scrapped plans to launch its Model 2 vehicle, which Tesla was aiming to make in the U.S. state of Texas, Mexico and a third country. At the time, Musk denied the reporting but did not go into further detail.
The more economical Model 2 had been expected to cost $25,000 and drive Tesla’s growth into the mass-market vehicle segment.
Last year, the Trump-supporting tycoon said Tesla would “definitely” build its factory in Mexico, but that the timing of the factory would depend on the economy and interest rates.
He also said Tesla would start the initial phases of construction last year, which did not happen.
(Reporting by Raul Cortes Fernandez; Additional reporting by Ben Klayman in Detroit; Editing by Cassandra Garrison, William Maclean)
