Mexico Can’t Compete with U.S. on Incentives to Build Tesla Plant
2023.03.04 01:38
Mexico Can’t Compete with U.S. on Incentives to Build Tesla Plant
By Ray Johnson
Budrigannews.com – If Tesla (NASDAQ:) were to come to Mexico, it would not be able to match the incentives provided by a US law to control inflation. Mexico’s finance minister said on Friday that Inc. builds a battery plant there, days after Tesla said it would build a “gigafactory” there.
Local officials claim that Tesla has visited the central states of Hidalgo, Queretaro, and Puebla in order to scout potential locations. However, Tesla has not confirmed whether it will also construct a battery plant in Mexico.
At an event with Citigroup (NYSE:), Finance Minister Rogelio Ramirez told journalists, “We didn’t let Tesla waste their time thinking that we would be able to match the U.S.’ Inflation Reduction Act.” s Mexico division.
The Inflation Reduction Act, which was signed into law in August, gives buyers of electric vehicles a $7,500 tax credit if the battery meets a certain threshold for sourcing parts from the United States or other free trade partners, like Mexico.
On Wednesday, Tesla CEO Elon Musk stated that the company would construct a gigafactory in Nuevo Leon, a northern state, which, according to officials there, could generate 10,000 jobs and attract investments of up to $10 billion.
Ramirez claims that Tesla stated that it “did not need any kind of fiscal stimulus” other than the benefits permitted by Mexico’s free trade agreements to build the plant, despite the fact that Mexico welcomed the investment.
An announcement regarding a battery plant in Mexico has not yet been made.
Ramirez stated, “The battery plant was the Mexican government’s suggestion, not part of Tesla’s original plan.”
Ramirez asserted that Mexico would be unable to match American incentives without legislation.
