Tesla and the Nuevo León state government are still negotiating for the latter to deploy infrastructure at the Gigafactory Mexico site, which could possibly explain the holdup in starting construction.
Tesla finally announced Gigafactory Mexico during its Investor Day in March. The automaker secured a piece of land just outside of Monterrey, Nuevo León, to build the plant.
Tesla has talked about building the factory in record time, even hoping to beat Gigafactory Shanghai’s timeline of nine months between breaking ground and production.
However, that groundbreaking has yet to come.
Last month, we got some indications from sources in the supply chain that we shouldn’t hold our breath for the project to move at the pace that Tesla first hinted at.
Now, the Nuevo León governor, Samuel Garcia, gives some more details as to what might be holding back the factory.
The governor disclosed that Tesla had asked the government to deploy “energy, water, road and rail infrastructure” at the site of the factory.
According to government officials, they are still in the early stages of the infrastructure part of the project (via Reuters):
Tesla and Nuevo Leon’s government are in the early stages of detailing investments and infrastructure needed, the state said.
The government appears to be very open to a large investment into those infrastructures, knowing that Tesla’s own investment in the factory will create a lot of jobs for the region.
That’s not looking good. If they are still in the “early stages” of looking into the infrastructure investment, which looks to be very much needed to bring the project to production, we are years away from production.
I am open to a counterargument, but it doesn’t look good. What do you think? Let us know in the comment section below.
Tesla and the Nuevo León state government are currently in negotiations for the deployment of infrastructure at the Gigafactory Mexico site, which might explain the delay in starting construction. Tesla announced the Gigafactory Mexico during its Investor Day in March and secured a piece of land near Monterrey for the plant. The company had hoped to beat the timeline of its Gigafactory Shanghai, which took nine months from breaking ground to production. However, there has been no groundbreaking yet. The governor of Nuevo León revealed that Tesla had requested the government to provide energy, water, road, and rail infrastructure for the factory. Government officials state that they are still in the early stages of planning the infrastructure investments. The government is open to making a significant investment in these infrastructures, as Tesla’s investment in the factory will create numerous jobs in the region. However, the delay in infrastructure planning suggests that the production of the Gigafactory Mexico is still years away.