Elon Musk has put the brakes on the multi-billion euro project to build a Tesla-Gigafactory in Mexico.
The construction of the factory, originally planned for northern Mexico, will be put on hold at least until after the US elections.
The reason given for this decision was Tesla-CEO Elon Musk cited uncertainty regarding future US trade policy as the reason for this decision. In particular, Donald Trump's threat of tariffs on cars produced in Mexico could make the project uneconomical.
There have been doubts about the implementation of the project since it was announced last year. Among other things, critics pointed to the water shortage in the region and increasing competition from Chinese car manufacturers, who also want to gain a foothold in Mexico.
The decision by Tesla raises questions:
- Impact on the Mexican economy: The planned Gigafactory would have created thousands of new jobs and strengthened the region's economy.
- Global supply chains: How will the decision by Tesla affect global supply chains in the automotive industry?
- The future of electromobility: What impact will this development have on the expansion of electromobility worldwide?
It remains to be seen whether Tesla finally abandons its plans for a gigafactory in Mexico or resumes the project after the US elections.
