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Tesla considers options outside Nuevo Leon in Mexico due to energy supply concerns

(Credit: Tesla Owners Mexico/Twitter)

Tesla is considering options outside of Nuevo Leon for a potential production facility in Mexico as concerns with energy supply by the Federal Electricity Commission (CFE) have established potential barriers for the location.

According to several media outlets in Mexico, Tesla and its CEO Elon Musk had outlined its needs for water, roads, labor, and electricity if it were to commit to a factory in Nuevo Leon. However, a meeting late last year proved to be consequential, as the CFE may not be able to supply an adequate amount of energy to keep the factory’s production and operations stable.

Sources close to the situation reportedly said (via Diario):

“During his visit a few months ago, Musk chose the land and, in turn, gave the requirements to be able to settle in Nuevo León…The meeting of Tesla’s envoys with the CFE was not good and they requested other (electricity) providers. That is where the problem that is trying to be solved lies.”

Nuevo Leon was considered the front-runner for the potential Tesla factory, and announcements confirming the company’s commitment to the location were expected to happen late last year. However, Tesla never announced this commitment to the location, and has since considered other options.

Tesla is now rumored to be exploring a potential Gigafactory location in Central Mexico in the State of Mexico, one of the country’s 32 territories. Mexican Presidential Spokesman Jesus Ramirez said earlier this week that, “Tesla is looking at investing in that area to take advantage of AIFA.” AIFA is the Felipe Angeles International Airport near Mexico City.

Tesla mulls EV production plant near new Mexico City airport

“Tesla will invest there…in an assembly plant, to export directly by air,” he told El Heraldo de Mexico.

Tesla has considered several locations for new production plants outside the United States, including Canada, Indonesia, and South Korea. Tesla recently committed to expanding its Gigafactory Nevada facility near Reno with a $3.6 billion investment that will support the production of the class 8 Semi.

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Tesla considers options outside Nuevo Leon in Mexico due to energy supply concerns
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