Tesla is always remaining a forward looking automaker of America. As the electric vehicle market is very unstable, the innovation by Tesla is also finding challengers in the changing landscape. This time Tesla is facing hurdles with it’s Mexico Gigafactory.
Since the announcement Mexico Gigafactory is always in highlight due to its hold up to start production, where on the other hand the automaker said it wanted to move fast. This confusion is now getting light as.
A recent confirmation by Elon Musk, the CEO of Tesla about putting on hold a new Gigafactory in Mexico due to potential tariff implications tied to the upcoming US elections.
Musk said that the project would happen, and Tesla is ordering “long lead items” for it, but the timing would depend on how they see the economy recover. But in the meantime Tesla prefers investing in Texas to work on the existing facilities. Such as production facilities of the long awaited Robotaxi and Optimus robots. He pointed to a shift in focus towards consolidating production within the United States.
Brand’s move to put a hold on the expanded plan in Mexico is seen as the setback to Tesla’s expansion strategy. But this could be Tesla’s strategy to adapt and strategy to navigate the changing dynamics of global markets.
As the data from the current year regarding Tesla sales reveals the brands low growth so working on the existing facility could be the best way to recapture the positions. Further focusing on products that can be manufactured within the US, Tesla is also mitigating risks that come with an uncertain tariff landscape.
