Minister Marcos Pontes Reportedly Negotiating Terms for Tesla Plant in Brazil

RIO DE JANEIRO, BRAZIL – According to reports in the NSC Total column, the Minister of Science, Technology, Innovation and Communications, Marcos Pontes, is negotiating with federal Deputy Daniel Freitas the installation of a Tesla plant in Brazil.

The Minister and the Deputy did not wish to name the electric vehicle assembly plant, but they are said to have clarified that it is one of the most valuable in today’s global market. In any case, the goal would be to bring an electric car plant to the country while Chamber Bill PL4825 is under consideration in the Chamber to benefit vehicles and batteries made in the country with a tax exemption.

Despite no confirmation of a name, Marcos Pontes’ official agenda pointed to a videoconference meeting with Anderson Pacheco, senior production engineer at Tesla, last Wednesday, February 12th.

NSC Total further details that after convincing Tesla to come to Brazil, the goal would be to bring an assemply plant to Santa Catarina. There is even mention of promoting the visit of a Brazilian delegation – which would include President Bolsonaro – to the company’s headquarters in the USA.

Bill 4825/2019 intends to exempt vehicles powered exclusively by electricity from IPI (Tax on Industrialized Products) and import taxes until the end of 2029. There would also be incentives for hybrids throughout the country.

As a result, should Tesla eventually decide to build its South American base in Brazil, there should be great competition among states and municipalities for the automaker’s preference.

Santa Catarina’s stake at the moment seems to be Criciúma, but more settled automotive poles in Paraná and São Paulo may prove to be stronger competitors. None of this, however, has been officially confirmed, remaining a speculation for the time being.