The Mexican government's promise to build affordable electric cars has been derailed by Tesla's global news

The idea is to use the ingenuity of Mexican companies and Mexican researchers to bring them together to build an electric car, Shinbaum said. The idea is to create a production chain that would produce this fully electric car in our country.

He cited electric vehicles from China and India as examples, some of which are already flooding Mexico. Small electric motorcycles from China have flooded Mexican roads in recent months, but Scheinbaum said the motorcycles, which are often ridden by three people at a time in Mexico, are too dangerous.

Mexico does not produce lithium, a battery core material, or large quantities of batteries, but the plan faces a number of problems. High internal electricity rates may also be an obstacle.

There are some clay-related lithium deposits in northern Mexico that the government nationalized under the previous administration. However, Shinbaum said that lithium extraction techniques are not currently commercially viable and production from these sources is likely to be long-term.”

And anyone who wants to charge batteries at home may face abnormally high bills. Mexico subsidizes low-level domestic electricity use at about 10 cents per kilowatt hour, slightly below the U.S. average.

However, any electricity consumption above the minimum level is much higher, which is basically enough to power a dozen light bulbs, a washing machine and a refrigerator.

Moreover, Mexico's exhausted power lines and transmission facilities are unable to meet current demand, except for massive home charging of vehicle batteries.

Shinbaum didn't say what sales price Mexico is setting for its ultra-small electric car, but that could be another issue.

Some Mexican discount stores offer a small Chinese electric car by mail order for about $1,000. It will be very difficult for Mexican manufacturers to compete with motorcycle-level prices.

Earlier this year, Mexico was stunned when Tesla suspended plans to build a gigafactory in the northern border state of Nuevo Leon. The promise of the plant sparked fierce competition among Mexican governors for the facility.

Musk said in July that I think we'll have to see what things look like after the election. Trump has announced that he will impose high tariffs on vehicles made in Mexico. In such a case, there is no point in investing large amounts of money in Mexico.