The Facts
Mexican President Andrés Manuel López Obrador announced Tuesday that car manufacturer Tesla will build a new factory in the northern city of Monterrey.
The development of the facility, to become Tesla's third factory outside of the US following plants in China and Germany, had raised concerns over the factory's water demands affecting the region.
The Spin
Narrative A
The deal between Tesla and Mexico allows Elon Musk's company to utilize the lack of export tariffs to over 40 countries that production in the US cannot provide. Meanwhile, Tesla's venture into the Mexican manufacturing economy will generate further business and employment. This is a true win-win opportunity.
Narrative B
Mexico and Latin America as a whole have become overly fond of incoming foreign tech investment — believing a tech boom will naturally follow. In fact, Mexico simply expects Musk's venture to be a success rather than doing the hard work to make this a reality. While the opportunity may be too good to say no, such a move could actually be a hindrance to Mexico's longer-term development.
