According to information from Motor1/UOL, following a meeting between Argentine president Javier Milei and businessman Elon Musk in the United States, the city of Zárate, in Argentina, offered tax incentives to the car manufacturer Tesla to establish an electric car factory in the district. , located north of the province of Buenos Aires.
Mayor Marcelo Matzkin made a direct proposal to Musk: “In Zárate, Argentina, any company that wants to set up shop to produce electric vehicles, their auto parts and charging infrastructure, will not pay taxes for 10 years. We are waiting for you, Elon Musk. We have the best location and incredible cuisine.” The only condition imposed by Matzkin is that the company hires 75% local labor.
Zárate is already home to two other car factories: Toyota Argentina, which has been operating for 26 years, and Mercedes-Benz Trucks and Buses, currently under construction and expected to start production in early 2026.
Recently, Milei and Musk met at the Tesla factory in Austin, Texas. During this first meeting, they agreed to plan Musk’s visit to Argentina, scheduled for the middle of this year. Milei’s advisor, Carlos Ruckauf, revealed that Tesla could establish an electric vehicle factory in Argentina to serve all of Latin America, as long as Congress approves the Electromobility Law, which has been stalled for months in the neighboring country.
It is worth remembering that Elon Musk has faced controversy in Brazil due to disagreements with the Brazilian judiciary related to his social network and freedom of expression. The face-to-face meeting between Milei and Musk will be the first opportunity for them to discuss in person. In March, Musk announced the arrival of the Starlink satellite internet service in Argentina, targeting areas with little conventional network coverage.
Although Tesla has been manufacturing the electric Model Y, the world’s best-selling car in any segment, since last year, the company still does not have a large presence in South America. Currently, it has only one official dealership in Chile, and the Units in the region were imported independently or as part of diplomatic fleets.
