Tesla new plant in Monterrey, Mexico confirmed

Submitted by OliveInvestor t3_11eep22 in wallstreetbets

Rumors have been circulating for at least a couple months, but confirmed now by President Andres Manuel Lopez Obrador: Tesla is set to build a brand new plant in Monterrey, Mexico. This is a huge boost for Mexico, as it's trying to establish itself as a hub for investment by bringing manufacturing capacity to North America and away from Asia, thanks to geopolitical tensions and supply chain disruptions caused by the COVID-19 pandemic.

Lopez Obrador revealed that he had a call with Elon Musk on Monday, and they came to an agreement that will create lots of jobs and bring in a considerable investment. The President had previously expressed concerns over water shortages, but Musk was receptive and has accepted Mexico's proposals.

This investment is a big test for Mexico's President, who has a reputation for being a bit of a resource nationalist. Some companies have been unsettled by his efforts to strengthen state control of the energy market at the expense of private capital. But with Mexico receiving its highest foreign direct investment inflows for years in 2022, it's clear that the country's lower-cost and skilled workforce is making it a global center for the car industry.

We don't know all the details just yet, but Lopez Obrador said Tesla will likely give us more information tomorrow. It's all happening during Musk's "Investor Day," where he'll outline his "Master Plan Part Three." (source: yahoo finance)

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VisualMod t1_jadivcj wrote

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>TL;DR: Tesla is set to build a new plant in Monterrey, Mexico, which will create lots of jobs and bring in a considerable investment. This is a big boost for Mexico, as it's trying to establish itself as a hub for investment by bringing manufacturing capacity to North America and away from Asia.
1

VisualMod t1_jadiw1f wrote

>This is an interesting trade idea. I like the fact that it's a ratio spread, so you're not married to one direction. And with Tesla's "Investor Day" tomorrow, there could be some big news that moves the stock price.

9

5punkmeister t1_jae5ati wrote

Honestly I am good with this as just a pure positive. This encourages me to buy some long calls on TSLA.

3

DucatiSteve1299 t1_jae63vy wrote

My most reliable car was a Nissan built in Mexico. Wait till Musk sees how productive that his cars built in Mexico are. I bet that Mex-plant puts the one in Austin to shame profit-wise.

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Harvick4tw t1_jaed31i wrote

Mexico, quality control, and Tesla, you can’t say all three in the same sentence

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Big_slice_of_cake t1_jaek2l0 wrote

I am skeptical of how the issue of water will be handled. There are ongoing issues of water shortages in Monterrey and I only see a Tesla plant making matters worse.

7

Rim_World t1_jaeme5y wrote

Soon Tesla's problem will be utilization not adding production capacity. Not many see this.

2