Argentina invites Elon Musk to set up a Tesla factory in the country: 'We are waiting for you'

Zárate's invitation to Elon Musk

The mayor of the city of Zárate, in Argentina, extended an invitation to Elon Musk after the billionaire had a meeting with the country's president, Javier Milei, last week. According to the mayor Marcelo Matzkin, Musk is welcome to set up a factory Tesla in the city. Among the perks that would be offered to the billionaire is the non-payment of taxes for 10 years, for example. In South America, Tesla has only one dealership, located in Chile.

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Invitation Conditions

“In Zárate, Argentina, any company that wants to set up shop to produce electric vehicles, their auto parts and charging infrastructure will not pay taxes for 10 years. We are waiting for you, Elon Musk. We have the best location and incredible cuisine,” said Matzkin. He imposed, however, one condition: that 75% of Tesla's workforce must be local. The mayor published the invitation on the X (formerly Twitter).

In Zárate, Argentina, every company that wants to set up shop to produce electric vehicles, their auto parts and charging infrastructure, will again have to pay taxes for 10 years. We are waiting for you @elonmusk. We have the best location in and incredible cuisine!

Negotiations in Progress

Musk and Milei met at the U.S last week to discuss plans for the possible installation of a Tesla in Argentine. The agenda comes amid the Electromobility Law that is being discussed in the Argentine Congress. Two other factories already enjoy tax benefits in the city. The first is the Toyota Argentina, which has been operating there for over 25 years. The other is a factory Mercedes-Benz Trucks and Buses, which is in the final installation phase and should start producing vehicles in 2026.

Expectations for the Argentine Market

A new meeting between the billionaire and the president of Argentina should take place this year. According to Milei's advisor, Carlos Ruckauf, It is possible that Tesla will install a factory in the country if the Law is approved. Furthermore, it is also worth remembering that recently Elon Musk was involved in controversies with the Brazilian Judiciary. In other words, a possible Tesla factory installation here in the country seems to be out of Musk's plans for now. Units of Tesla's most famous electric car, the Model Y, arrive in Brazilian lands through independent imports, for example.

Regaining Leadership in Global Sales

After the BYD have hit the Tesla As the largest electric vehicle manufacturer in the world, Elon Musk's company overtook the Chinese company. Now, just like the Car Newspaper showed, the North American brand occupies first place in global sales. In this first quarter of 2024, Tesla sold more than 386 thousand electric cars, while BYD sold around 300 thousand units.

Regarding the portfolio, Tesla stands out with two trending models: Model 3 It is Model Y. Known for its luxury cars, there is an expectation that the brand will launch a more affordable vehicle. However, there is still no forecast for the model to reach the market. According to speculation, it would cost around US$ 25 thousand (about R$ 125 thousand).

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