Nuevo León grants Tesla Giga Mexico a $153 million incentive.

Nuevo León grants Tesla Giga Mexico a $153 million incentive.

Nuevo León has greenlit incentives totaling $153 million for Tesla's Gigafactory Mexico, aiming to allay concerns over potential delays. The package encompasses essential infrastructure development such as roadworks and water treatment facilities. Additionally, it involves a 3.37% reduction in payroll tax, amounting to 2,627 million pesos—a fraction of Tesla's investment excluding employee expenses.

Iván Rivas, the State Secretary of Economy, emphasized Tesla's transformative impact on Nuevo León's economic landscape. Drawing parallels with the Nevada Gigafactory, which delivered an economic ripple effect vastly surpassing initial investments, Rivas highlighted the prospect of 12,000 new direct jobs related to Tesla—nearly 15% of the state's annual job creation.

Recently securing land permits from the Federal Ministry of the Environment, Tesla's Gigafactory Mexico represents Nuevo León's most substantial investment yet, initially valued at $4.5 billion. Anticipated to yield 4,500 jobs across manufacturing and technology sectors, the state forecasts substantial regional benefits. Notably, the state predicts over 60% of the factory's supplies to originate locally. Moreover, a migration of more than 30 suppliers to Nuevo León is expected due to the trend of nearshoring—shifting production closer to the United States from Asia.

 

-----This article is partly excerpted from NPR.

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