Tesla and the Nuevo Leon state government are still negotiating for the latter to implement infrastructure at the Gigafactory Mexico site, which in all likelihood may delay the start of construction.
Tesla finally announced Gigafactory Mexico at its investor day in March. The automaker secured land on the outskirts of Monterrey, Nuevo Leon, to build the plant.
Tesla has talked about building the factory in record time, hoping to even beat the nine-month deadline set by Gigafactory Shanghai between the start of construction and production.
However, this progress has still occurred.
Last month, we got indications from source chain resources that we held our breath to keep the task moving forward at the speed Tesla first hinted at.
Now, Nuevo Leon Gov. Samuel Garcia is giving more headlines about what might be holding the plant back.
The governor said Tesla had asked the government to deploy “energy, water, road and rail infrastructure” at the factory site.
I would like this article to put in context the timing of the announcement, because I do not forget it.
For example, did Tesla announce this new site at a time when they were looking to sweeten bad news about deliveries or profit margins, or is Tesla doing well?Since Electrek is following this case closely, did Tesla disclose those foreseeable delays at first?(since they actually knew that the land they had received did not include the required infrastructure)?
Context is a very vital component of journalism, especially for a company like Tesla that can make an overly positive announcement and then rely on its followers to justify the lack of progress by invoking the argument “possibly it would be overdue, but Tesla is still successful. “It just doesn’t make sense to me to be told how temporarily this task will be finished when they were making plans to build on a site with limited access to critical infrastructure in a country that is still developing. Besides, with all the If Tesla has cash, wouldn’t it make more sense for them to simply pay to install the mandatory infrastructure?The factory launched a year or two earlier would likely have more value to Tesla than cash stored up by negotiating payments with Mexico.
According to government officials, they are still in the early stages of the task’s infrastructure (via Reuters):
The Tesla and Nuevo Leon government is beginning to detail the necessary investments and infrastructure, the state said.
The government is very open to large investments in this infrastructure, knowing that Tesla’s investment in the factory will create many jobs in the region.
It doesn’t look good. While they are still in the “early stages” of reading infrastructure investments, which seem to bring the task into production, we are years away from production.
I’m open to a counterargument, but it doesn’t sound good. Let us know in the comments segment below.
Fred is editor-in-chief and senior editor of Electrek.
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