The road to Tesla’s first Mexico factory

By Brendan O’Boyle

MEXICO CITY (Reuters) – Electric car maker Tesla Inc has chosen the northern Mexican state of Nuevo Leon as the site for its first plant in the country, Mexican President Andres Manuel Lopez Obrador said on Tuesday.

The announcement followed months of speculation over the global auto giant’s plans for a “gigafactory” in the Latin American country as it aims to meet an ambitious global plan to sell 20 million electric vehicles a year by 2030.

Here is an overview of the events that led up to the deal.

2022

June 13: News outlet Electrek reports that Tesla Chief Executive Elon Musk told workers the company is considering sites in Canada and Mexico for a new factory.

June 23: Musk in an interview says new car factories in Texas and Germany are “losing billions of dollars.”

Oct. 11: A senior Mexican government official tells Reuters he is confident Mexico can boost electric car sales from 5% currently to 50% by 2030.

Oct. 24: A source tells Reuters that Musk is considering investing in the Santa Catarina municipality, on the edge of Nuevo Leon’s capital Monterrey, after meeting with the state governor and the U.S. ambassador to Mexico.

Dec. 19: Mexican newspaper Reforma reports Tesla could announce construction of a gigafactory in Nuevo Leon.

Dec. 22: Musk says Tesla is close to picking a location for a new gigafactory, after putting plants in China and Germany.

2023

Jan. 31: Lopez Obrador’s spokesman says Tesla is considering setting up a plant near the new Felipe Angeles International Airport outside Mexico City.

Feb. 3: Mexican Foreign Minister Marcelo Ebrard says Mexico is in talks with several companies to build several manufacturing hubs for electric vehicles across the country.

Feb. 8: Lopez Obrador says Nuevo Leon and Hidalgo states could be home to a new Tesla plant.

Feb. 17: Ebrard says Tesla will soon confirm it has chosen Mexico as a location for a new plant.

Feb. 24: Lopez Obrador says water scarcity in Nuevo Leon could keep Tesla from building plant there, stirring fears his government could upend investment plans.

Feb. 24 and 27: Musk and Lopez Obrador speak in calls as Mexico and Tesla near investment deal.

Feb. 28: Lopez Obrador announces Tesla will build an assembly plant in Monterrey.

March 1: Tesla is to hold an Investor Day during which Musk is expected to give details of the company’s plans.

(Reporting by Mexico City Newsroom; Writing by Brendan O’Boyle; Editing by Richard Chang)