Reviewing Mexico EV Investments: Impact of Trump’s Re-election? Tesla and BYD’s Moves

As the possibility of former President Trump being re-elected increases, Tesla and BYD have temporarily halted their investments in electric vehicle (EV) factories in Mexico.

This has raised concerns about the future of the automotive industry.


In this article, we will explore the details behind these moves and their potential impact.

BYD and Tesla Halt Investments

China’s electric vehicle manufacturer, BYD, has stopped plans to establish a new factory in Mexico.

Similarly, Tesla, the American EV giant, has paused its plans to build a low-cost EV factory in Mexico.


Both companies have made these decisions while waiting for the results of the U.S. presidential election.

The Impact of Trump’s Re-election

If Trump is re-elected, there is a strong possibility that higher tariffs will be imposed on cars imported from Mexico to the U.S.

Trump has signaled his intention to place tariffs of up to 100% on Mexican vehicles.


This could alter the current conditions under the United States-Mexico-Canada Agreement (USMCA), which allows for tariff-free trade under certain conditions.

Future Outlook and Supply Chain Changes

If Trump’s re-election becomes a reality, we can expect an increase in tariffs on imports from Mexico, which may lead to accelerated investments in other regions.

Southeast Asia and India, in particular, are gaining attention as potential new production hubs.

Conclusion

Tesla and BYD’s decision to pause their investments reflects the uncertainty around potential changes in trade policies if Trump is re-elected.

How this will reshape Mexico’s automotive industry remains a point of focus moving forward.