Mexican Economy Minister Raquel Buenrostro said in an interview that electric car manufacturer Tesla has not officially registered its investment plan in a factory near Monterrey, Mexico, where it reportedly plans to produce the next generation of electric vehicles.
Buenrostro noted in the interview that although Tesla has announced an investment that could eventually increase to $10 billion in multiple stages, the company has not yet registered the plan with the Ministry of Economy.
Earlier, Musk said on a third-quarter earnings call that the company was not ready to go "all in" on construction in the northern Mexican state of Nuevo León. The plant had been seen by Mexico's state and federal governments as the latest sign that Mexico is attracting top companies as a shift in supply chains boosts so-called "nearshore investment."
Buenrostro added in the interview that Tesla's planned investments require a certain amount of water, and currently the company is unable to obtain the amount it needs due to the drought. The Mexican government says it will prioritize domestic water use. This could be a reason for the company to delay the plan. But nonetheless, she still thinks Tesla's decision is "firm, even if delayed," as its suppliers are setting up in the region.
"Despite the delays, the signs are good," she said.
In addition, Buenrostro also mentioned in the interview that according to Mexican statistics, it is expected that more than US$100 billion in investment will be achieved in the next two to three years, with US$70 billion coming from foreign companies and US$33 billion coming from local companies.
She added that in order to attract overseas investment, the Ministry of Economic Affairs is negotiating with the Ministry of Finance on plans to expand tax incentives.