Musk said it was only a matter of time before Tesla would build a factory in Mexico.

CTOnews.com, October 19, after news that Tesla will slow down his investment in Mexican superfactories. In a third-quarter earnings call on Wednesday, Mr Musk responded that it was only a matter of time before Tesla would build a factory in Mexico. Tesla is still working in Mexico, but is also keeping a close eye on the problem of high interest rates.

Musk said that the company is currently laying the foundation for the construction of a factory near Monterrey, Mexico, but the project is under pressure from interest rates and the global economy.

In March, Tesla announced plans to build a $5 billion assembly plant near Monterrey that will produce a range of new electric cars. Musk had previously said the electric car plant would start production in 2025.

"for Mexico, we are working on infrastructure and plant design in parallel with the engineering development of the new production line, where we will build a new production line." "I think we want to learn about the state of the global economy before we go all out to promote the construction of factories in Mexico," Musk said. I'm worried about the high interest rate environment we're in. "

In an effort to control inflation, the Fed has raised interest rates 11 times since March 2022, from 0.25% to 5.5%.

Musk says high interest rates in the United States are affecting car sales across the country. "for the vast majority of people who buy cars, the key is the monthly payment, and as interest rates rise, the proportion of interest in monthly payments will naturally increase." "if interest rates remain high or higher, it will be more difficult for people to buy cars, which they simply can't afford," Musk said. "

Tesla earned $23.4 billion in the third quarter, below analysts' expectations of $24.06 billion. The company also reported adjusted earnings of 66 cents a share, below analysts' expectations of 74 cents.

"We will definitely build a factory in Mexico. We feel good about it. We put a lot of energy into exploring different locations. We feel good about that location. We will build it. It will be great." "the pressure really comes from timing," Musk said. "I'm going to repeat the financial problem over and over again, which is that interest rates have to come down."

Musk also said he still had "post-traumatic stress disorder" in 2007-08, when Tesla was on the verge of financial collapse.