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Mexican economy chief wishes to sound out Musk on Tesla plant strategies

Mexico's economy chief will try to satisfy quickly with Tesla's chief executive Elon Musk to identify his plans for an electrical vehicle factory in northern Mexico, he informed local radio on Thursday, part of a push to grow the country's key carmaking sector.

Economy Minister Marcelo Ebrard is a former foreign minister and experienced political operator, and restoring plans for a. so-called Tesla gigafactory in Mexico's Nuevo Leon. state would mark a significant early victory for the federal government of. President Claudia Sheinbaum, who took workplace last month.

U.S.-based Tesla is the world's leading maker of electric. automobiles.

I'm going to set up a meeting with (Musk) soon so that he. informs me exactly what he's believing and see what we can do so. this job progresses, Ebrard told local radio broadcaster. Radio Solution.

Last April, Tesla revealed that it will utilize its existing. factories to build brand-new and more cost effective lorries, leaving. investments in prospective brand-new factories, consisting of in Mexico,. not likely in the near term.

U.S. President-elect Donald Trump's victory in Tuesday's. election also includes new problems to the plans for Mexico,. perhaps shifting the plant to the United States.

Throughout his very first term as president, Trump typically forced. U.S. business to optimize their domestic production. operations over abroad plants.

As a prospect, Trump stated he would enforce tariffs of 200%. or more on lorries imported from Mexico.

Previously this year, Reuters reported that Tesla had scrapped. strategies to launch its Model 2 vehicle, which Tesla was aiming to. make in the U.S. state of Texas, Mexico and a 3rd country. At. the time, Musk denied the reporting but did not go into even more. information.

The more affordable Model 2 had actually been anticipated to cost. $ 25,000 and drive Tesla's development into the mass-market vehicle. section.

Last year, the Trump-supporting tycoon stated Tesla would. certainly construct its factory in Mexico, however that the timing of. the factory would depend on the economy and interest rates.

He also stated Tesla would begin the preliminary stages of. building in 2015, which did not take place.

(source: Reuters)