MEXICO CITY, March 3 (Reuters) – Mexico wouldn’t be capable to match the incentives supplied beneath a U.S. act to tame inflation if Tesla Inc builds a battery plant within the nation, Mexico’s finance minister stated on Friday, days after Tesla introduced the development of a “gigafactory” there.
Tesla (TSLA.O) has not confirmed whether or not it’ll additionally construct a battery plant in Mexico, however native officers say Tesla has visited the central states of Hidalgo, Queretaro and Puebla to scout potential websites.
“We did not let (Tesla) waste their time considering that we might be capable to match the U.S.’ Inflation Discount Act,” Finance Minister Rogelio Ramirez advised journalists at an occasion with Citigroup’s Mexico unit.
A consultant for Tesla in Latin America didn’t instantly reply to a request for remark.
Signed in August, the Inflation Discount Act gives a $7,500 tax credit score to electric-vehicle consumers if the automotive’s battery meets a threshold for sourcing components from the U.S. or different free commerce companions, reminiscent of Mexico.
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CEO Elon Musk stated on Wednesday that Tesla would construct a gigafactory within the northern state of Nuevo Leon, which native officers stated may deliver funding of as much as $10 billion and create 10,000 jobs.
Whereas Mexico welcomed the funding, Tesla stated it “didn’t want any type of fiscal stimulus” past the advantages allowed beneath Mexico’s free commerce agreements to construct the plant, in response to Ramirez.
A call on a battery plant in Mexico has but to be introduced.
“The battery plant was not in (Tesla’s) unique plan, it was the Mexican authorities’s suggestion,” Ramirez stated.
With out laws, Ramirez stated, Mexico wouldn’t be capable to match U.S. incentives.
Reporting by Kylie Madry and Noe Torres; Modifying by Sarah Morland
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