Monterrey, Nuevo León — Elon Musk has put a hold on the construction of his Giga Mexico factory after an announcement of heavy tariffs. On Tuesday, Tesla CEO Elon Musk said building plans will be paused until after the U.S. presidential election.
He made the announcement after presidential candidate Donald Trump said he planned to slap heavy tariffs on vehicles made in Mexico. In response, Musk said if that happens, it does not make sense to invest a lot in Mexico.
“We’re currently on pause on Giga Mexico. I think we need to see just where things stand after the election,” he said Tuesday regarding the tariff announcement.
“Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So we will kind of need to see how things play out politically,” he said.
Musk visited Mexico in February of 2023 at which time he announced he would be building a gigafactory to produce his electric car line. The plan was to begin production in 2026.
In February of this year, Nuevo León Governor Samuel Garcia announced the first stone has been laid in the construction of Giga Mexico, a factory being built outside the city of Monterrey in the Mexican state of Nuevo León.
The U.S. presidential election is set for November 5, 2024.
