Mexico is going through fierce competition among states to secure a possible Tesla plant in a tussle similar to what goes on among US cities and governments competing to gain investments from IT companies. Mexican governors have gone to new extremes to promote their states, such as by installing billboards, constructing dedicated lanes for cars, or making mockups of Tesla ads, as reported by the Associated Press.
Tesla has not given in any official word and there is no assurance that it will construct a full-fledged plant. The hype is unfounded, and the major source of it is Mexican officials’ claims that Tesla CEO Elon Musk would soon get on a phone call with Mexico president Andrés Manuel López Obrador.
‘Welcome Tesla’ billboards
Nuevo Leon, an industrial state in the north, appeared to hold an early lead in the competition.
It created “Welcome Tesla” billboards in the state capital of Monterrey in December after painting the Tesla emblem on a lane at the Colombian border crossing into Texas last summer. It also featured Mariana Rodriguez, the state governor’s influencer wife, appearing in photos from a gathering with Musk.
López Obrador, on the other hand, seemed to rule out the semi-arid state on Monday, saying he wouldn’t let manufacturers’ usual high water use run the danger of causing shortages there.
That sparked an aggressive scramble among the other Mexican states.
“Veracruz is the only state with an excess of gas,” quipped Gov. Cuitláhuac García of the Gulf coast state of Veracruz, before quickly adding “gas … for industrial use, for industrial use!”
Being a late entrant, Garca had to work harder. He pointed out that Veracruz was home to Mexico’s sole nuclear power plant. Moreover, he said that Veracruz was responsible for 30% of Mexico’s water supply, despite the fact that the National Water Commission estimates the state’s contribution to be closer to 11%. It seems that water is thicker than blood.
Not to be left out was the governor of Michoacan, a state in western Mexico. With the slogan “Michoacan — The Best Choice for Tesla,” governor Alfredo Ramrez Bedolla swiftly tweeted a mock-up advertisement for a Tesla automobile next to a gigantic, car-sized avocado, Michoacan’s most famous export.
Auto assembly plant or ‘ecosystem’ of suppliers?
There is scepticism over the nature of the auto assembly plant. It won’t be a plant. According to Marcelo Ebrard, secretary of foreign relations, it will be an “ecosystem” of suppliers.
In the past, Musk has made promises that either do not materialise or do so decades after he says they would. For instance, he stated in 2019 that he would have a fleet of completely autonomous robotaxis operating on the roads by 2020. Tesla has yet to sell any autonomous vehicles over three years later.
Although there hasn’t been much discussion of subsidies in Mexico so far, numerous automakers have received considerable incentives to set up factories there.
(With inputs from agencies)
