Tesla’s international limbo with expanding its manufacturing presence outside of the United States more aggressively has left various governments seeking alternatives.
However, some still seem to be holding onto hope that Tesla, a leading force in the global electric vehicle market, will invest in their territories.
Tesla has been looking for its next location for an international gigafactory. For years, Tesla has hinted that it will build in India, but import duties and other complications have effectively delayed these efforts.
The company then completely committed to Gigafactory Mexico after choosing Nuevo Leon as its location and slotting a large land plot as the location of its new production plant.
But things got complicated as CEO Elon Musk backed Donald Trump for President; his policies on foreign manufacturing complicated Tesla’s commitment to Mexico. India truly was not in the scope of this issue, especially as it aimed to build cars for its market and others nearby.
“We’re currently on pause on Giga Mexico. I think we need to see just where things stand after the election…Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So we will kind of need to see how things play out politically.”
With Trump winning the election, Mexico is likely still on an indefinite hold. India seems to be coming to terms with the fact that Tesla is unlikely to expand there as well, and it is looking for alternatives.
A new report from Reuters states that India plans to expand EV incentives to automakers who will build vehicles at factories that are already built. This will limit the positives coming to those companies that plan to build new plants in India, potentially shooing away foreign entrants.
Tesla, at one point, was extremely likely to build a plant in India. Musk had met with Prime Minister Narendra Modi and said Tesla would one day be manufacturing cars in India.
The same was said about Mexico. In the near term, it does not seem likely.
These countries know what a massive investment from Tesla would entail and how it would benefit their economies. Now, they’re simply holding on to hope.
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