Tesla, Inc. TSLA is reportedly getting traction from the government of Nuevo Leon in Mexico, which has begun preliminary work to define the location of access points to the EV maker's future Gigafactory in the country while aiming to generate the necessary information for upcoming tenders.
The local government is gearing up to inject over $130 million into infrastructure, laying the groundwork for Tesla's construction slated for the next year, according to a news report by Reuters.
This move comes hot on the heels of Musk citing potential delays due to global economic headwinds.
Mexico has proudly spotlighted the $5 billion Tesla initiative as a testament to the growing "nearshoring" trend, with companies keen on relocating manufacturing bases from Asia closer to the U.S., the report added.
Despite the initial ambiguity surrounding Tesla's commitment, the focus is now on the automaker's next steps in Mexico.
Santa Catarina mayor Jesus Nava affirmed the local administration's proactive stance in enhancing the requisite infrastructure for Tesla's anticipated factory, the report noted.
The endeavor, surpassing 2.5 billion pesos ($136.46 million), is a state-funded project, with expected construction to kick off in the first half of 2024.
Interestingly, Nuevo Leon Governor Samuel Garcia recently unveiled nearly $1 billion in projected investments from Chinese Tesla suppliers during his Shanghai trip, Reuters reported.
Despite the buzz, Garcia was unavailable for comments after the announcement, the report added.
In a related development, Tesla is also making significant inroads in South America, with job postings suggesting major moves in Chile.
Price Action: TSLA shares closed lower by 3.69% to $211.99 on Friday. Shares were up by 0.33% to $212.70 after hours.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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