(Bloomberg) -- Elon Musk said Tesla Inc. is still planning a vehicle factory in Monterrey, Mexico, but isn’t ready to go “full tilt” on its construction because of the state of the global economy.

The electric-vehicle maker is still “laying the groundwork” for the factory, Musk said on the company’s third quarter earnings call on Wednesday. The initial phase of the plant will begin early next year, said Musk, who has been known to slip on his estimates for timing. 

The comments come after weeks of speculation on whether the plant, first announced in March, will in fact be built. Nuevo Leon, the northern state where the factory is planned to be built, earlier this month said Tesla had requested the state improve electricity, water and transportation before starting construction planned for this year. 

The plant, expected to require about $10 billion in investment, has been touted by both the state and federal governments as a sign that Mexico is attracting top companies as part of its nearshoring appeal. Tesla executives and local officials have denied reports that the plant was being canceled.

“This article is one of many I have seen that incorrectly and randomly comments on our Mexico plans,” Rohan Patel, Tesla’s head of policy, posted on X earlier this month about one report. “We will continue to make progress with the local, state and federal governments and we are very appreciative of their efforts to enable the permits and infrastructure necessary.”

Nuevo Leon state will grant the company 2.5 billion pesos ($136 million) in incentives, which will be allocated to public infrastructure, newspaper Reforma reported last week citing governor Samuel Garcia. At the time, Garcia said Tesla picked Nuevo Leon, Mexico’s industrial cluster hub close to the Texan border, because of its lower costs, workforce availability and presence of key parts suppliers. 

Tesla Mexico Plant Means $10 Billion Investment, Garcia Says

The Musk-led EV maker rose in extended trading on news that the long-awaited Cybertruck will finally hit the market next month. 

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