The Mexican state of Nuevo León said on Thursday that Tesla still plans to build a factory here, and that the local government will invest more than $136 million in infrastructure to support the construction of the Tesla factory. The day before, Tesla CEO Elon Musk's speech on the earnings call seemed to reveal hesitation about the project. He said: "I think we want to understand the state of the global economy before we fully promote the construction of the Mexican factory. I am worried about the high interest rate environment that we are in."
Musk said the company was "laying the groundwork to begin construction" in Mexico but had no firmer plans yet. "It's really just a matter of timing ... we think we'll start the initial construction phase next year," he said.
Investors are closely watching Tesla's next steps in Mexico after the company confirmed difficult progress on its plans for the country.
Jesus Nava, mayor of Santa Catarina, Nuevo León, said that local officials have begun to improve the infrastructure in the area where Tesla is building a factory.
"At the state and municipal levels, we are advancing the infrastructure studies requested by Tesla, which will be provided by the state with more than 2.5 billion pesos ($136.46 million)," he said in a statement.
"We hope to start construction of the Tesla factory in the first half of 2024."