The relationship between the president of Argentina, Javier Milei, and the businessman who owns Tesla, Elon Musk, narrowed even closer two weeks ago (April 12) when the two met in the United States.
As a result, the city of Zárate, located north of Buenos Aires, Argentina, has offered tax benefits if Tesla decides to build a factory on the site, which is already home to Toyota (where the Hilux is manufactured) and Mercedes-Benz Truck and Buses, which is building a factory there.
The proposal was presented by the mayor of the region, Marcelo Matzkin, who told Musk: “In Zárate, Argentina, any company interested in setting up to produce electric vehicles, their auto parts and charging infrastructure will not pay taxes for 10 years. We look forward to welcoming you, Elon Musk. We have the best location and amazing cuisine,” Matzkin said. However, there is one condition: “They must hire 75% of the local workforce.”
Carlos Ruckauf, Milei’s advisor, stated that Tesla could establish a factory of electric vehicles to serve all the Latin America from Argentina, as long as Congress approves the Electromobility Law, which has been stalled for months.
Currently, the only dealership of the American automaker in South America is in Chile. To purchase a Tesla vehicle in other countries in the region, interested parties need to import it independently, which entails much higher costs. Currently, the Tesla Model Y is the best-selling car in the world, with an estimated 775,000 units sold.
