There are doubts that whatever Musk eventually does announce will be an auto assembly plant. “You remember a few years back, Amazon talked about building their headquarters, like every state, city in the country was putting in bids, trying to lure Amazon there,” Abuelsamid said. Sam Abuelsamid, a principal research analyst at U.S.-based Guidehouse Insights, said playing one state off against another has been common practice in the U.S. “Tesla could say it’s not somebody’s toy to be moved around anywhere, and it could decide not to come to Mexico,” she said. That could be a dangerous game, Siller said. She said the president appeared to be trying to steer Tesla investment to a state governed by his own Morena party, like Michoacan or Veracruz. López Obrador’s focus on water might be more about politics than about droughts, said Gabriela Siller, chief economist at Nuevo Leon-based Banco Base. ![]() “We are two states that do not have to compete and cannibalize each other … cannibalization for investment is a mistake,” Alfaro said. Jalisco has an already healthy foreign tech sector, but most importantly, it has more water than Nuevo Leon. Together, the two came up with an “alliance” Thursday that would allow trucks from Jalisco preferential use of Nuevo Leon’s border crossing, the same one where a “Tesla” lane appeared last year. García reached out to the western state of Jalisco, whose governor, Enrique Alfaro, belongs to the same small Citizen’s Movement party. Samuel García had to think fast to avoid being shut out entirely, and came up with a novel strategy. But similar violence in neighboring Guanajuato state hasn’t stopped seven major international automakers from setting up plants in Guanajuato. Michoacan also has an intractable problem of drug cartel violence. “We have enough water,” Ramírez Bedolla said in a television interview he did between a round of meetings with auto industry figures and international business representatives. Alfredo Ramírez Bedolla quickly posted a mocked-up ad for a Tesla car standing next to a huge, car-sized avocado – Michoacan’s most recognizable product – with the slogan “Michoacan – The Best Choice for Tesla.” The governor of the western state of Michoacan wasn’t going to be left out. Water, it turns out, is thicker than blood. And he claimed Veracruz had 30% of Mexico’s water, though the National Water Commission puts the state’s share at around 11%. Cuitláhuac García of the Gulf coast state of Veracruz, before quickly adding “gas … for industrial use, for industrial use!”Ī late-comer to the race, García had to try harder: He noted Veracruz was home to Mexico’s only nuclear power plant. “Veracruz is the only state with an excess of gas,” quipped Gov. ![]() The governors’ offers ranged from crafty proposals to near-comic ones. That set off a competitive scramble among other Mexican states, like feeding time at a piranha tank. However, López Obrador appeared to exclude the semi-desert state from consideration Monday, arguing he wouldn’t allow the typically high water use of factories to risk prompting shortages there.
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