Elon Musk postpones his plans for a Tesla plant in Mexico until after the US elections
"We kind of need to see where things play out politically," said the billionaire entrepreneur, given the possibility that Trump will increase tariffs on products made in the Latin American country if he is elected.
Elon Musk at the Academy of Motion Picture Museum in Los Angeles, California.
Elon Musk announced that Tesla Inc. will pause its investment in a new plant in Mexico pending the upcoming U.S. presidential election. The decision is based on concerns about the political risk associated with promises by Republican candidate Donald Trump to impose higher tariffs on products manufactured in the Latin American country.
During a conference call with analysts and media on Tuesday, Musk explained that he considers it prudent to wait before proceeding with major investments in the Latin American country due to the tariffs Trump could impose on vehicles produced in Mexico if he returns to the House, Elon Musk is postponing his plans for a Tesla plant in Mexico until after the U.S. White House elections.
"I think we need to see just where things stand after the election. Trump has said that he’ll 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. We kind of need to see where things play out politically," he said.
Musk's support for Trump
Despite the fact that the company's investment plans could be affected if Trump is the winner in the upcoming presidential election, the billionaire tycoon has made it clear that it is the former president whom he backs. Musk went public with his endorsement of Trump shortly after the assassination attempt he suffered and even pledged to make significant donations to a political action committee to support his campaign.
"I fully endorse President Trump and hope he recovers quickly. The last time America had such a tough candidate was Theodore Roosevelt," he said after the attack on the former president.
Delays in the construction of the Mexico Gigafactory
Elon Musk had announced the plant in March 2023. However, the factory has been experiencing delays ever since. At the end of 2023, Musk decided to postpone construction due to high interest rates, and although in February of this year, the governor of Nuevo León, Samuel García, assured that construction would begin in March, construction is now once again suffering a pause.
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