Nuevo León, with its industrial history, is no stranger to large projects. Its proximity to Texas and network of suppliers turned the state into a magnet for electromobility investments.
In this context, Tesla was no exception: in February 2023, the company decided to invest five billion dollars in a gigafactory for electric vehicles in Nuevo León, with an annual production capacity of one million units.
With over 60 of the brand’s suppliers already established in the region, the ground seemed more than fertile for the plant to become a reality.
Manuel Montoya Ortega, director of the Nuevo León Automotive Cluster and industry expert, is quick to highlight the importance of the local cluster, an ecosystem that, according to him, was already prepared to welcome Elon Musk‘s giant.
But, as in every good story, expectations sometimes clash with reality. The construction of the plant, announced with much media noise, came to a halt. The reason? A mix of political and economic factors forced Tesla to “hold back” temporarily.
Montoya Ortega explains it: “the market dictates.” And today, the North American electric vehicle market is not at its best.
Sales did not take off as expected, and with the uncertainty surrounding the upcoming U.S. elections, Tesla decided to play a safer card and wait.
However, the pause in the project does not mean a cancellation. In fact, the decision is more of a long-term strategy.
With plants in Austin, California, and Nevada, Tesla has more than enough capacity to meet current demand. The gigafactory in Mexico remains an ace up its sleeve, especially because of the advantages it offers in terms of tariff-free exports to international markets.
Politics as the backdrop
The political component in this story cannot be ignored. Recent statements by Donald Trump, who doubled down on his protectionist rhetoric, added a layer of uncertainty to the American brand’s expansion plans.
“They took it as political leverage, but the project had already been on hold since the beginning of the year,” reveals the executive during the International Mobility Portal Summit “Electric vehicles: New Opportunities for Strategic Markets: Latin America and The Caribbean.”
The reality is that the project, far from being a 100-metre race, is more akin to a marathon: finding the right moment is crucial, especially if today’s expectations differ from those of a few years ago.
What’s next
While Tesla measures its next steps, Nuevo León is not pressing pause. The automotive cluster continues to strengthen, and the suppliers that arrived with the promise of the Tesla plant are continuing to solidify their operations.
Here, the director says: “We have companies like Quanta, which makes the brains for Tesla, and Faurecia, which is producing the interiors and seats for those models.”
But that’s not all: there are around 60 suppliers of the electric giant located in the region, positioning Nuevo León as a potential eMobility hub.
The question now is not if Tesla will build in Mexico, but when it will do so. And when that day comes, Nuevo León will be more than ready to welcome it.
The CRE’s response to Tesla’s requests
Recently, Musk’s brand revealed a document where it expressed concerns about the General Administrative Provisions (DACG) on electromobility, issued in February by the Energy Regulatory Commission (CRE), which entered public consultation.
In this context, Walter Julián Ángel Jiménez, CRE commissioner, reviews the points raised by the automotive giant, aiming to draft a kind of “open letter.”
Firstly, one of Tesla’s expressed concerns was related to the requirement to equip charging stations with two types of connectors, which could “hinder” the expansion of its charging stations.
The official insisted that at least one of the established connectors must be complied with.
“This measure seeks to ensure interoperability, allowing any electric vehicle to access the charging infrastructure,” says Jiménez.
However, Tesla already uses two connectors in Mexico: the SAE J1772 and the SAE J34. Thus, the firm can “install its chargers without needing to add competitors’ connectors.”
It is worth mentioning that in the United States, three types of connectors are used, although there is no standard homologation.
What about the independent supply?
On the other hand, the issue of independent supply also sparked debate.
Tesla objects to the requirement to have an independent power supply contract for charging stations.
This is a regulation established in 2015 under resolution 999 that aims to correctly account for eMobility demand and promote the transformation of networks into smart grids.
A point where the commissioner notes: “It is essential to have a controllable demand process where vehicles can inject energy into the grid.”
This approach allows for more efficient energy management and fosters innovation in charging infrastructure.
The truth is that despite Tesla’s doubts, the CRE held numerous meetings to clarify these aspects and contribute to mutual understanding.
Besides, a matter of numbers
In its document, the American automaker also pointed out that the presentation and labelling of electricity prices on tariff panels do not align with the use of its charging services.
At this point, the CRE is guiding Tesla on how it could comply with the regulation.
“The regulation only applies to charging stations like electric forecourts where the price is transparently displayed in the applications that locate charging systems. It does not necessarily have to be on a board like in a shopping centre hub,” explains the expert.
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