Snubbed by Tesla, Mexican government pledges to create its own small, affordable electric car

Snubbed by Tesla, Mexico's new president has pledged to create a Mexican-made small, affordable electric car. President Claudia Sheinbaum said Teslas were too expensive for the Mexican market anyway. Tesla CEO Elon Musk said in July the company had “paused” plans for a plant in Mexico in July, citing Donald Trump’s remarks about possible auto tariffs. Sheinbaum said her government will try to bring together Mexican companies and researchers to produce a “compact, cheap electric car.” The plan faces a number of problems, including the fact Mexico doesn't produce any lithium, key for batteries, nor any mass quantity of batteries. High domestic electricity rates could also be a roadblock.