In a move to expand its global footprint, Tesla is setting up its first factory in Mexico and is currently in the reported search of local parts suppliers. This is a part of the company’s strategy to capitalize on the “nearshoring” trend, to stay close to U.S. consumers and mitigate the challenges they faced with international shipping during the pandemic, reports Reuters.
Eugenio Grandio, overseeing the establishment of the new facility in Nuevo Leon, mentioned that Tesla’s founder, Elon Musk, is eager to collaborate with local businesses capable of evolving alongside Tesla. The new factory will be dedicated to the production of next-generation electric vehicles (EVs).
A recent report also cited Tesla was seeking more suppliers, but asking Chinese suppliers to open up shop in Mexico for its Gigafactory.
Grandio shared his enthusiasm about joining Tesla and contributing to its growth in Mexico. He recounted his initial role of deploying charging stations across the country, a project that resulted in 15,000 chargers installed in just two years.
According to Grandio, the regulatory environment is ripe for a shift towards EVs in the U.S., Europe, and China. He emphasized that Latin America should not lag behind and should explore similar steps to promote EV adoption.
Tesla’s new endeavor is also backed by the country’s past experience with Musk. Former Foreign Minister Marcelo Ebrard, during the coronavirus shutdowns, was contacted by Musk to allow Mexican auto parts suppliers to resume operations to sustain the Tesla plant in Texas. The extensive supplier network of over 130 providers took Ebrard by surprise, hinting at Tesla’s already significant ties to Mexico.
