Tesla is one of the most innovative companies in the world and is set to revolutionise the automotive industry. With its plans to build the Giga Mexico factory in Monterrey, Nuevo Leon, Mexico, Tesla is set to have a significant impact on cross-border trade.
Experts predict that the factory will increase cross-border trade by $15 billion annually. This will be enabled by the factory’s suppliers who will deliver materials and components, creating new opportunities for businesses.
The factory’s 6,000 jobs and 1 million Electric vehicles per year will have a positive effect on the regional economy, creating more demand for industrial logistics space and increasing freight rates in both north and south directions.
The Tesla factory will create an “ecosystem of Electric vehicles”, with 3.5% of exports to the US representing a 10% increase in auto-related exports. Furthermore, the factory will be located in Monterrey, one of the largest shipping points in Mexico, which could be advantageous for shippers.
The addition of the Tesla Giga Mexico factory is a huge milestone for Mexico. It will create jobs, increase exports to the US, and create an ecosystem of Electric vehicles. Furthermore, cross-border trade will be greatly increased, with suppliers delivering materials and components, and shippers taking advantage of the location. It’s no wonder that experts are predicting a $15 billion boost in cross-border trade from this factory.