Tesla actively promotes Chinese supply chain companies to participate in the construction of Mexican factories

According to news on June 8, Tesla is actively considering building a new factory in Mexico to replicate its successful model in Shanghai, including establishing a complete supply chain system. Tesla is actively promoting Chinese supply chain companies to build factories in Mexico to achieve this goal.

Recent reports indicate that some Tesla suppliers have announced plans to build factories in Mexico. For example, Xusheng Group announced in March this year that it would invest no more than US$276 million (approximately 1.968 billion yuan) to establish a production base in Mexico. The project officially launched in the state of Coahuila, Mexico in May and is scheduled to start production next summer..

The report also pointed out that some more upstream equipment suppliers have also begun to enter the Mexican market. Many production equipment suppliers have settled in Mexico and set up their own offices to engage in design and after-sales supporting services. Some supply chain companies have even taken production line workers directly to Mexico to build factories.

According to industry insiders, unlike building a factory in China where land and financial support can be obtained, Tesla can only enjoy tax incentives and talent subsidies in Mexico, and has not been given these Other additional support from suppliers.

Previously reported that Tesla plans to build its fifth Gigafactory in Monterrey, the capital of Nuevo León, Mexico. According to officials from the Mexican Ministry of Foreign Affairs, the investment in the factory will exceed US$5 billion and the production capacity is expected to reach 1 million vehicles, which makes the factory's production capacity close to the level of Tesla's factory in Shanghai.

Tesla’s plan to build a factory in Mexico shows the company’s emphasis on the Mexican market and further promotes Mexico’s status as an important base for automobile manufacturing. This move is expected to lay a solid foundation for Tesla to further expand its influence in the Latin American market.

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