Mexico’s President Andres Manuel Lopez Obrador has downplayed Tesla CEO Elon Musk’s recent comments about pausing plans for a new gigafactory in Mexico. Musk cited potential heavy tariffs on Mexican-made cars by a future Trump administration as a reason for reconsidering the investment. Lopez Obrador dismissed Musk’s concerns as campaign rhetoric and emphasized the economic benefits of manufacturing in Mexico.
During a press conference, Lopez Obrador asserted that Musk’s remarks were “not serious” and attributed them to the heightened rhetoric typical of U.S. presidential campaigns. “During campaigns there is a lot of passion, a lot of rhetoric, there is too much talk. Once the elections are over the tone should change,” he stated. He expressed confidence that the tone would change post-election and criticized the feasibility of shifting vehicle production entirely to the U.S. due to higher production costs. The president highlighted that U.S. consumers save significantly by purchasing vehicles made in Mexico, with savings ranging between $10,000 and $15,000 per car.
Lopez Obrador also suggested that companies like Tesla often engage in speculative activities to boost their stock prices rather than focusing solely on production. “These companies often do not produce, but rather speculate. They release news and it does very well on the stock markets, they increase the price of their shares and production takes a back seat,” he remarked. He reassured that the Mexican state of Nuevo Leon, where Tesla’s planned gigafactory is to be located, has been diligently preparing the necessary infrastructure and has not received any formal cancellation notice from Tesla.
Nuevo Leon’s government confirmed its readiness for Tesla’s arrival, noting that many suppliers are already investing and producing in the state. This situation underscores the importance of clear and committed communication between international investors and national governments to prevent uncertainty and maintain stable economic relations.
