Nuevo Leon approves incentives for Tesla gigafactory

Nuevo Leon approves incentives for Tesla gigafactory

NUEVO LEON - The Economic Development Council of the State of Nuevo Leon approved Thursday the incentives for the construction of Tesla's gigafactory in the municipality of Santa Catarina.

The incentives, which total 2.627 billion pesos, are equivalent to just 3.37% of the investment that Tesla alone will make, not counting its more than 30 suppliers that are already or will arrive in the state as part of Nearshoring.

"Tesla's arrival confirms Nuevo León as the next regional hub for electromobility in Latin America," said Governor Samuel García.

Incentives authorized by the Council for basic infrastructure and to support the creation of new jobs through a reduction in the Payroll Tax include:

Construction of roads and bridges to improve connectivity in the area.

Expansion of the potable and treated water network.

Support for the training of local workers.

"Tesla marks a before and after in the economic development of the state," assured Iván Rivas, state Secretary of Economy.

"For example, the gigafactory in Nevada generated an economic spillover 28 times greater than the public investment, while in California 120 jobs were created in the supply chain for every 100 Tesla jobs. Thus, in Nuevo Leon there would be 12,000 new direct jobs related to Tesla, almost 15% of the jobs that are created each year in the state".

Tesla's gigafactory will be located in a strategic geographic area where key roads such as the Monterrey-Saltillo Highway (both the 40 Libre and the 40D toll road) and the Monterrey Peripheral Ring Road (100) converge. Tesla is the #1 automotive brand in the world and the 9th most valuable brand, also globally, according to Brand Finance. In terms of innovation, Tesla ranks