Musk says Tesla's Mexico factory on pause over Trump's tariff pledge

After his opening remarks, Musk was asked for an update on the status of Tesla's plan to build its Gigafactory Mexico plant near Monterrey, which was announced in February of 2023.
"We're currently on pause on Giga Mexico," Musk replied. "I think we need to see just where things stand after the election."
"Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn't make sense to invest a lot in Mexico if that is going to be the case. So we will kind of need to see how things play out politically," Musk explained.

Tesla hasn't announced which vehicles or products it plans to produce at the Mexico factory, but Musk noted that the company is accounting for the pause by increasing production capacity at existing factories — including for the forthcoming Robotaxi and its Optimus robots.
"However, we are increasing capacity at our existing factories quite significantly, and I should say that the Robotaxi will get produced here at our headquarters at Giga Texas, as will Optimus towards the end of next year for Optimus production version two — the high-volume version of Optimus will also be produced here in Texas," he added.