Elon Musk indicated that investing in Mexico could be unwise under Trump's proposed tariffs, stating, "It doesn't make sense to invest a lot in Mexico if that is going to be the case." This reveals the uncertainty surrounding Tesla's $10 billion gigafactory project and reflects broader concerns within the automotive industry regarding Trump's potential policies.
Investment bank UBS conveyed significant concerns, asserting that tariffs on vehicles produced in Mexico would be "highly disruptive" to the entire US automotive industry, emphasizing the serious ramifications for automakers including Tesla.
Trump's campaign promises to impose tariffs exceeding 200% on imports from Mexico have amplified anxiety in the auto sector, with analysts warning of a crisis should these tariffs be enacted, which could jeopardize Tesla's factory plans.
After the election, analysts noted that Trump's victory has propelled the status of Tesla's planned gigafactory deeper into uncertainty, with Musk awaiting clarity about the proposed tariffs.
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