“Hostile U.S. Climate”: Errol Musk Pushes Elon to Build EV Megaplant in Russia, Defying America’s Investment Obstacles.MD

In a move that has stirred fresh speculation about global expansion plans, Errol Musk — father of Elon Musk, the multibillionaire behind Tesla, Inc. and SpaceX — has publicly urged his son to consider establishing a massive electric-vehicle manufacturing facility in Russia. At the same time, Errol Musk criticised the investment climate in the United States, characterising it as increasingly “unfriendly” to bold manufacturing ventures.

What Was Said

During recent conversations reported by international media, Errol Musk suggested that Tesla could gain a strategic advantage by building an EV plant in Russia. While he did not give detailed logistical plans or site locations, his comments emphasised the potential benefits: abundant resources, lower labour costs relative to some Western jurisdictions, and possibly more favourable regulatory environments.

In parallel, Errol Musk lambasted the U.S. environment for manufacturing investment: rising regulatory burdens, labour constraints, and escalating costs. His message to his son: if you’re going to build a factory, “look where you’re treated like a partner, not like a target.”

Why Russia?

Russia may not currently be recognised as a strong electric-vehicle market — at least not in the way Western Europe or China are — but there are several factors that might appeal to a global auto manufacturer:

Resource base: Russia has vast reserves of raw materials required for battery production, including nickel and other critical minerals.

Cost-structure opportunities: Some analysts highlight that labour and some industrial costs may be comparatively lower than in Western Europe or the U.S.

Strategic diversification: For Tesla, establishing production outside its core markets (U.S., China, Europe) could help mitigate risk and open new export pathways.

Government incentives: Russia’s Ministry of Industry and Trade has publicly invited Tesla to explore factory options in the country, signalling openness.

U.S. Investment Climate Complaints

Errol Musk’s criticism of the U.S. stemmed largely from what he perceives as growing obstacles: high labour and regulatory costs, increasing political scrutiny, and uncertainty around long-term incentives for large-scale manufacturing. While Elon Musk and Tesla have built significant facilities in the U.S. (such as the Berlin and Austin plants) this commentary suggests that the Musk family is still watching global manufacturing ecosystems very closely.

Elon Musk’s Position & Past Statements

It’s important to note that while Elon Musk has publicly acknowledged the possibility of factories in “other parts of the world” including Russia, he has consistently stressed that no final decision has been made. For example, Musk tweeted:

“Tesla has not yet decided on a fourth Gigafactory location.”

He also remarked in 2021 that Russia had “a lot of talent and energy” and that it could make sense for a Tesla presence, although he cautioned about the market challenges there, such as charging infrastructure.

Implications & Reactions

Geopolitical sensitivity: Building a large manufacturing facility in Russia would inevitably carry geopolitical implications, especially given Russia’s current relations with the West.

Market realism: Analysts warn that Russia’s EV market remains small relative to China or Europe. Some suggest that manufacturing there might make sense as an export hub rather than to serve domestic Russian demand.

Signal to other markets: By publicly raising the possibility of Russia, the Musk family may also be sending signals to other regions (India, Eastern Europe, etc.) that Tesla is open to manufacturing anywhere it sees structural advantages.

Internal family influence: While Errol Musk is not directly involved in Tesla’s executive decisions, his vocal comments underline that the Musk family aligns on a broader global manufacturing vision.

The Bottom Line

Errol Musk’s remarks add a new dimension to Tesla’s global manufacturing strategy. They spotlight not only Russia as a potential manufacturing location but also highlight broader concerns about where large-scale manufacturing will be most favourable in the coming decade. Whether Elon Musk acts on his father’s suggestion remains to be seen — but the message is loud and clear: Tesla is watching global manufacturing conditions very carefully, and the U.S. is no longer the only default choice.

If you like, I can dig up deeper details about specific Russian regions being discussed, incentives offered by Russian authorities, and Tesla’s own strategic evaluations.