Mexico is watching the upcoming US presidential election with great attention, as its economy is closely linked to that of its northern neighbor. One possible consequence of the election result could be the cancellation of Tesla’s planned car factory in Monterrey, an investment originally announced by outgoing Mexican President Andrés Manuel “AMLO” López Obrador after extensive negotiations with Tesla CEO Elon Musk.
Musk, who supports Republican candidate Donald Trump, also expressed reservations about investing in Mexico if Trump wins in November. The former president has said he will raise tariffs to protect U.S. manufacturing, which could directly affect Tesla’s plans south of the border.
During a conference call on Tesla’s quarterly earnings last month, Musk said that major investments in Mexico “wouldn’t make sense” if there were tariffs on vehicles made there. “We’ll have to wait and see how things play out politically,” he added.
Musk’s comments came shortly after the Republican Party convention in Milwaukee, where Trump announced plans to impose tariffs of up to 200 percent on cars produced in Mexico to make them “unsellable.”
While Mr Trump’s rhetoric…
