Mexico to build its own cheap electric cars—forget Tesla

Sign up to receive daily news updates from CleanTechnica by email. Or follow us on Google News.

you read that correctly. A country called Mexico is tired of waiting for Tesla to build a factory there and produce cheap electric cars, so they’re going to make cheap electric cars themselves! Well, correct me, this will be working with private sector partners in a unique public-private partnership.

“Mexico announced on Monday that it will build a locally designed factory in the country, months after Tesla CEO Elon Musk halted plans to build a factory there, citing U.S. President-elect Donald Trump’s threat of higher tariffs. announced plans for an affordable small electric vehicle,” AFP wrote. “The Mexican government said the car will be manufactured through a public-private partnership and will cost between 90,000 and 150,000 pesos ($4,400 to $7,400).”

Wait, what?

Will these be electric cars or golf carts? Well, even assuming they are small electric cars, that kind of pricing is crazy and I’m very curious to know what you get for it.

The private partner is Olinia, and company president Roberto Capuano added: “We will be Mexico’s first light vehicle manufacturer developed with Mexican engineering.” This was during Mexican President Claudia Sheinbaum’s daily press conference.

Unsurprisingly, the goal of producing very cheap electric vehicles indicates where the country thinks it needs to strengthen its EV industry. Capuano argues that electric cars from foreign automakers are “expensive and out of reach for Mexican families.” Perhaps it’s specifically aimed at Tesla, given the company’s high popularity and the company’s open discussions and plans to build a factory in the country. It could also target BYD, the world’s other giant EV maker, which has plans to set up a factory in Mexico, but has not yet done so.

The first models from this partnership are expected to be produced in time for the 2026 World Cup, which begins in Mexico City on June 11, 2026.

Tesla’s plans to build a factory in Mexico had been on hold for years, but the project died as a project until President Trump committed to imposing “heavy” tariffs on products imported into the United States from Mexico. It seems like there wasn’t.