Mexican governors have created mock-up Tesla commercials, billboards, and dedicated automobile lanes. This indicates that the competition among Mexican states for a possible Tesla plant is heating up, mirroring the rivalry between US cities and states for tech investments.

But there is no certainty Tesla will construct a plant. In a report by Wish TV, Tesla CEO Elon Musk's scheduled phone chat with Mexico President Andrés Manuel López Obrador is the major cause of the hysteria.

Rivalry Between States

Nuevo Leon, an industrial state in the north, seems to be ahead of the other states early on.

Last summer, it painted the Tesla emblem on a lane at the Colombia border crossing into Texas, and in December 2022, it put up "Welcome Tesla" billboards in Monterrey. Leaked images showed Mariana Rodriguez, the state governor's wife, at a Musk party.

However, President Obrador seemed to rule out the semi-desert state, saying he would not allow manufacturers' excessive water usage to cause shortages in the said area.

As a late contender, Veracruz's governor Cuitláhuac Garca had to work harder, and he did so by highlighting the fact that Mexico's only nuclear power plant is located in Veracruz. Yet, the National Water Commission estimates that Veracruz only has around 11% of Mexico's water.

The governor of Michoacan, a state in the western part of the country, did not want to be left out. Instantly, Governor Alfredo Ramrez Bedolla put up a spoof advertisement for a Tesla automobile with the state's most known product, a giant avocado the size of a vehicle, and the tagline "Michoacan - The Best Choice for Tesla."

The governors' recommendations really varied from clever to comical.

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Will Tesla Build a Factory?

Despite all these, some are skeptical that anything Musk announces will be a car factory. Secretary of Foreign Affairs Marcelo Ebrard said that, to his knowledge, there would not be a factory but rather an ecosystem of suppliers.

According to Wish TV, Musk has a history of making claims that either never materialize or take place years after he first said they would. 

In 2019, for instance, he vowed to have a fleet of driverless robotaxis on the roads by 2020. After almost three years, Tesla still has not sold a single self-driving car.

While there has been little discussion of subsidies in Mexico so far, numerous automakers have received large incentives to set up shop in the country. That is an expensive type of race to enter.

Attracting Investments

US corporations formerly produced in China may be "nearshoring" their operations away from the nation due to concerns about its political climate and logistical difficulties. Mexico's best chance at attracting international investment is for these corporations to switch their focus to the South American nation.

Attempts by different jurisdictions to woo nearshoring-related investments are going to be tricky and complex.

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