Tesla’s construction of the Mexican factory is progressing smoothly $153 million reward approved

Tesla's Mexican factory construction progressing smoothly, receives $153 million reward approval

【PhoneAuto News】On December 15th, PhoneAuto learned that Tesla will receive a 2.63 billion Mexican pesos (equivalent to 153 million US dollars) factory incentive from the state of Nuevo Leon, Mexico, to establish its next large-scale factory there. This move indicates that local officials are trying to alleviate concerns about the delayed progress of the Tesla factory construction. In a statement released on Thursday, the Nuevo Leon government stated that the state’s Economic Development Commission has approved these incentive measures, including the construction of roads and water treatment facilities, as well as a reduction in wage taxes. Earlier this year, Tesla CEO Elon Musk requested that Nuevo Leon improve the region’s electricity, water, and transportation before starting construction. Although the state agreed to do so, the factory still faces delays.

Musk stated in October that he was not yet ready to “go all out” in building the factory due to high interest rates. In a recent interview, Musk also mentioned that Tesla will manufacture the next generation entry-level car at its Texas factory first, before producing it at the Mexican factory, as the new factory won’t be completed on time.

Earlier this week, the Mexican environmental regulators approved Tesla’s land use permit, but the company still needs to obtain a series of permits from local and federal governments, such as the Energy Regulatory Commission, in order to construct and operate the Nuevo Leon factory.

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In March of this year, Tesla officially announced its plans to build a mega factory in Mexico to produce the next-generation electric vehicles based on a new car platform. The factory will be 20 times larger than the domestic Shanghai factory, occupying an area of over 4,200 acres (approximately 16.99 million square meters). However, during the Q3 earnings conference, Musk announced that the construction would be temporarily halted. Tesla stated that it plans to invest approximately 10 billion US dollars in the factory in several stages. According to the Nuevo Leon government, Tesla’s initial investment will be 4.5 billion US dollars.

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