Tesla Inc TSLA CEO Elon Musk on Wednesday mentioned that the corporate is stalling its gigafactory plans in Mexico owing to excessive-rates of interest.
What Occurred: Tesla is presently laying the groundwork to begin development in Mexico. Nevertheless, the corporate can be taking a look at how the worldwide financial system is doing earlier than going ‘full tilt’ with its Mexico manufacturing facility plans, Musk mentioned.
“I am nervous concerning the excessive-rate of interest surroundings that we’re in. I simply can’t emphasize this sufficient that the overwhelming majority of individuals shopping for a automotive is concerning the month-to-month cost,” Musk mentioned.
Additional, the corporate occupies solely a small portion of the land out there at Giga Texas and there may be sufficient area to do all of the scaling and analysis proper there. Nevertheless, in Texas, there’s a lack of personnel provided that the better Austin space has solely 2 million individuals, Musk mentioned.
However the firm isn’t backtracking on its plans of placing up a manufacturing facility in Mexico, Musk mentioned. The corporate checked out completely different areas earlier than zeroing in on Mexico and feels ‘excellent’ concerning the location and expects to begin the preliminary phases of development subsequent 12 months. The query is solely about timing, Musk mentioned.
“In case you can inform me what the rates of interest are, I can inform you once we ought to construct the manufacturing facility,” Musk mentioned whereas including that he didn’t wish to go full throttle into ‘uncertainty.’
Automakers And The Financial system: “If the macroeconomic situations are stormy, even when the most effective ship remains to be going to have robust instances, the weaker ships will sink. We’re not going to sink. However even an important ship in a storm has challenges,” the CEO mentioned. Musk additionally recounted the time when legacy automakers Basic Motors and Chrysler went bankrupt in 2009 and added that he’s nonetheless ‘considerably scarred’ by the incident.
Tesla announced its new gigafactory in Mexico close to the town of Monterrey earlier this 12 months in March. “Our subsequent Gigafactory will likely be in Mexico, manufacturing our subsequent-gen automobile,” Tesla tweeted then, with a conceptual picture of the Gigafactory.
Photograph Courtesy: Frederic Legrand – COMEO On Shutterstock.com
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Tesla CEO Elon Musk Highlights Concerns About Financial system, Interest Rates As It Holds Back On Giga Mexico – Tesla (NASDAQ:TSLA) www.benzinga.com 2023-10-19 20:10:28
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