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Tesla Giga Mexico will receive 2.63 billion pesos ($153 million) in incentives from the local government. Nuevo León aims to create conditions for a smoother entry of the company into the country.

The incentives, approved by the state’s economic development council, were for the creation of basic infrastructure near the factory. This includes roads, water treatment infrastructure, and a reduction in payroll taxes, the Nuevo León government said in a statement. The move comes in response to Elon Musk’s request to improve power, water, and transportation in the region before Tesla begins construction. The state agreed to do this.

In October, during the Q3 2023 earnings call, Musk said Tesla would not rush through its plan to build a factory in Mexico due to the difficult economic situation. In a recent interview, he also said that Tesla will begin production of its next-generation car first at Giga Texas due to Giga Mexico not being ready in time.

Earlier this week, Mexico’s environmental regulator approved Tesla’s land use permit, the next major step. However, the company still requires a number of local and federal permits to build and operate the factory.

Tesla is expected to invest about $10 billion in building a few phases of the factory. According to the government of Nuevo León, Tesla’s initial investment will be $4.5 billion.

Article edited by @SmokeyShorts; follow him on X

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