Tesla Is Looking at Land Near the Mexico City Airport, Official Says

(Bloomberg) -- Tesla Inc. is considering a range of options for manufacturing in Mexico that could include building on land near the new airport that serves the nation’s capital, according to a spokesperson for the president’s office.

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A facility near the airport in Mexico State would give Tesla quick access to cargo, said the spokesperson, Jesus Ramirez. The company is also looking at sites in Nuevo Leon or Sonora state for possible investment, he said.

Ramirez didn’t provide information about the scale of investment or the intended use of the land near the airport, which was built under the administration of President Andres Manuel Lopez Obrador. Tesla didn’t immediately respond to an emailed request for comment.

Tesla has long contemplated building a third factory in North America to expand beyond its plants in Texas and California. Chief Executive Officer Elon Musk told shareholders in August that a decision might be made before the end of the year. Bloomberg reported in December that the company was close to a deal for an assembly plant near Monterrey, in Nuevo Leon, but an agreement has yet to be announced.

Read More: Tesla finalizing plans for assembly plant in Monterrey

The airport near Mexico City, known as AIFA, was one of the major projects pitched by Lopez Obrador, one intended to replace a half-finished airport started under the prior administration of Enrique Pena Nieto and to be built at a lower cost, with the help of military engineers.

Lopez Obrador has encouraged its use, persuading US President Joe Biden and Canada Prime Minister Justin Trudeau to land there for a summit earlier in January. Aeromexico announced on Tuesday it received authorization for direct flights from the airport to Houston.

Reuters reported earlier on Tesla’s potential interest in a site near the airport.

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