According to Chinese media, Tesla underestimated the difficulty of building a factory in Mexico.
reportedly shared the updated start of production target with suppliers in China, which were informed that if they fail to build their own facilities in Mexico to aid in the whole manufacturing process, they might end up losing their export deals to the EV maker’s American factories.
In other words, it looks like Tesla is trying everything it can to keep key suppliers as close to itsas possible, which should result in lower costs overall compared to importing components from different parts of the world and shipping them to Mexico.
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