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Potential holdup: Tesla wants the government to install infrastructure at the Giga Mexico site

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Tesla Gigafactory Mexico

Tesla and the Nuevo León state government are still negotiating for the latter to deploy infrastructure at the Gigafactory Mexico site, which could possibly explain the holdup in starting construction.

Tesla finally announced Gigafactory Mexico during its Investor Day in March. The automaker secured a piece of land just outside of Monterrey, Nuevo León, to build the plant.

Tesla has talked about building the factory in record time, even hoping to beat Gigafactory Shanghai’s timeline of nine months between breaking ground and production.

However, that groundbreaking has yet to come.

Last month, we got some indications from sources in the supply chain that we shouldn’t hold our breath for the project to move at the pace that Tesla first hinted at.

Now, the Nuevo León governor, Samuel Garcia, gives some more details as to what might be holding back the factory.

The governor disclosed that Tesla had asked the government to deploy “energy, water, road and rail infrastructure” at the site of the factory.

According to government officials, they are still in the early stages of the infrastructure part of the project (via Reuters):

Tesla and Nuevo Leon’s government are in the early stages of detailing investments and infrastructure needed, the state said.

The government appears to be very open to a large investment into those infrastructures, knowing that Tesla’s own investment in the factory will create a lot of jobs for the region.

Electrek’s Take

That’s not looking good. If they are still in the “early stages” of looking into the infrastructure investment, which looks to be very much needed to bring the project to production, we are years away from production.

I am open to a counterargument, but it doesn’t look good. What do you think? Let us know in the comment section below.

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