Nuevo Leon, Mexico – Elon Musk, CEO of Tesla, has announced that the company is putting its investment in a new factory in Nuevo Leon, northern Mexico, on hold. This decision comes as Musk awaits the results of the upcoming U.S. presidential election. During a call with analysts to discuss Tesla’s financial results, Musk was asked about the progress of the factory’s construction and stated that the outcome of the election would significantly influence their plans.
In the same call, Musk addressed concerns about U.S. presidential candidate Donald Trump’s stance on electric vehicle (EV) support. He noted that while Trump’s potential removal of support for EVs could negatively impact other automakers, it would only slightly affect Tesla in the short term and could potentially benefit the company in the long run.
“It would be devastating for our competitors, and it would hurt Tesla slightly but long term probably actually helps Tesla would be my guess,” Musk remarked. This statement came after Tesla reported its lowest profit margin in over five years during the post-earnings conference call.
Former President Trump, who is the Republican candidate endorsed by Musk, has been vocally critical of the Biden administration’s EV policies. Trump has pledged to “end the electric vehicle mandate” if he wins the election, although he has not provided detailed plans on how he would achieve this.
Musk downplayed the potential impact of removing EV subsidies on Tesla, emphasizing the company’s focus on artificial intelligence and self-driving technology. “The value of Tesla overwhelmingly is autonomy. These other things are in the noise relative to autonomy,” Musk said.
The billionaire’s endorsement of Trump followed an assassination attempt on the candidate earlier this month. Musk has denied media reports claiming he promised to donate $45 million per month to Trump, though he did confirm the creation of a political action committee.
Musk’s support for Trump has caused some confusion among Tesla fans, who questioned how Trump’s election would benefit the EV company. Trump’s vice-presidential pick, JD Vance, previously introduced a bill to eliminate EV subsidies and replace them with credits for gas-powered vehicles. However, this bill has little chance of passing in the current Congress.
Musk recently posted on X, formerly Twitter, advocating for the removal of all subsidies across industries: “Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!”
In his acceptance speech at the Republican Party’s convention in Milwaukee last week, Trump declared that his administration would impose tariffs of 100% to 200% on cars made in Mexico to render them “unsellable” in the United States. This pronouncement has added another layer of uncertainty to Tesla’s plans in Mexico.
On Tuesday, Musk confirmed that Tesla has paused its plans for a plant in Mexico and will reassess the investment after the U.S. presidential election. “Trump has said that he will put heavy tariffs on vehicles produced in Mexico so it doesn’t make sense to invest in Mexico,” Musk explained.
Meanwhile, Tesla is ramping up production capacity at its existing factories and has plans to produce robotaxis at its Texas facility. This strategic shift underscores Tesla’s commitment to advancing its autonomous driving technology, even amid political and economic uncertainties.
