Tesla, suppliers to invest $15 bln in Mexico factory - local governor
MEXICO CITY, Sept 11 (Reuters) -A state governor in Mexico said on Monday that Tesla TSLA.O and its suppliers would invest $15 billion over the next two years in a factory that is still under construction, an amount that is triple what Mexican officials previously announced.
In March, Tesla CEO Elon Musk said his company would open a gigafactory in northern Nuevo Leon state, part of the electric carmaker's push to expand its global footprint.
At the time, Musk did not detail Tesla's investment, but Mexican officials said the factory would involve a $5 billion investment.
Speaking at an event, Nuevo Leon Governor Samuel Garcia said the facility will now involve thrice that amount.
Neither Tesla's press office nor Nuevo Leon officials responded after hours to a request for comment on the governor's comments.
"Just Tesla and its suppliers will generate an investment of $15 billion in two years," the governor said, adding that this "enormous amount" will require the state to spend more on highways and other public works.
Prior to Tesla's announcement earlier this year, major global automakers BMW, General Motors and Ford had all announced plans to begin or step up electric vehicle production in Mexico's massive automaking sector as the industry transitions away from cars powered by fossil fuels.
Sources had previously told Reuters that Tesla planned to begin production in Mexico in 2025, but the company has not announced a start date for construction of its gigafactory or when output will come online.
Reporting by Carolina Pulice and Daina Beth Soloman; Editing by David Alire Garcia and Miral Fahmy
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.