Tesla is considering options outside of Nuevo Leon for a potential production facility in Mexico as concerns with energy supply by the Federal Electricity Commission (CFE) have established potential barriers for the location.

According to several media outlets in Mexico, Tesla and its CEO Elon Musk had outlined its needs for water, roads, labor, and electricity if it were to commit to a factory in Nuevo Leon. However, a meeting late last year proved to be consequential, as the CFE may not be able to supply an adequate amount of energy to keep the factory’s production and operations stable.

Sources close to the situation reportedly said (via Diario):

“During his visit a few months ago, Musk chose the land and, in turn, gave the requirements to be able to settle in Nuevo León…The meeting of Tesla’s envoys with the CFE was not good and they requested other (electricity) providers. That is where the problem that is trying to be solved lies.”

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