But the presentation does not appear to have impressed investors. Tesla’s share price, which is often volatile, was down about 5 percent in extended trading on Wednesday evening.
In China, the automaker BYD has surpassed Tesla in electric vehicle sales, challenging the notion that Tesla is poised to dominate the auto industry as battery-powered cars increasingly supplant gasoline models. BYD is now making a big push into Germany and other European countries, threatening to undermine Tesla’s dominance there.
When asked about China, Mr. Musk handed the question off to Tom Zhu, who oversaw construction of Tesla’s factory in Shanghai and now oversees all of the company’s factories. As long as Tesla offers good products at reasonable prices, “you won’t have to worry about demand,” Mr. Zhu said. “I’m not too concerned about China.”
China has the world’s largest car market, and Tesla’s factory in Shanghai produces more cars than any of its other plants.
After falling 65 percent last year, Tesla’s share price has recovered some of its value but is still down almost 50 percent from its high in November 2021, when the company was worth more than $1 trillion.
With the factory in Monterrey, Tesla is following a path taken by almost all other major carmakers, which have long made cars and components in Mexico, attracted by cheaper labor and duty-free access to the U.S. market. Ford makes the electric Mustang Mach-E in Cuautitlán, north of Mexico City. BMW in February announced that it would build electric vehicles in San Luis Potosí, where it already has a large manufacturing operation.
Monterrey, in Nuevo León State, has been less prominent in the auto industry than other Mexican states like Guanajuato, where G.M., Toyota, Honda, Volkswagen and Mazda have operations. But Monterrey is a seven-hour drive from Austin, where Tesla began manufacturing vehicles last year.
Tesla also has factories in Fremont, Calif., and Berlin. The factories in Austin and Berlin are still getting up to speed, suggesting it will be a challenge for Tesla to manage the ramp-up of another plant.
