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BAJA CALIFORNIA, MEXICO

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BAJA CALIFORNIA, MEXICO

‘‘To accelerate the advent of sustainable transportby bringing compelling mass-market cars

to market as soon as possible’’

Elon Musk CEO

Mexicali, Baja California

Location

Distance from MexicaliPalo Alto, CA

Hawthorne, CA

Hawthorne, CA

Fremont, CA

Sparks, NV

Palo Alto, CA

Fremont, CASparks, NV

580 Mi230 Mi570 Mi620 Mil

125+ WorldwideStores & Service Locations

Headquarters: Palo Alto, CA Employees: +10,000

On the Road in 37 countries

Founders:Elon Musk / Martin Eberhard

/ Marc Tarpenning / JB Straubel / Ian Wright

Founded in 2003by a group of Silicon Valley

engineers

$ Incresing year a�er year

(2013)$2,013.5 million

Tesla Electric Miles Driven

190 Million

Mexicali

Similar Foundations for Future Success

Brand

Partnership

Brand

Partnerhip

IP Leaderships

Financial

Management

Location

Financial

Community

City Reputation, infrastructure, industry, culture, education & more

Government, Academy and private sector cooperation.

Strategic Border Crossing, First Class Highways, Railroad Service,

Seaports and Airports.

Tax bene�ts granted by law (100% Payroll tax exemption, water

connection fees and costs) and special package )

High skilled and stable human resources.

Non-union environment

Founded in 1903

State Capital

Population: 1’025,740 million

According to Business Week the Safest Border City in Mexico

Industry: second most important activity for the economy of the City

Public environmental consciousness.

Mexicali Baja California

Working Enviroment

MexicaliSaltillo NuevoLeón

CiudadJuárez

Queretaro

2.8%

6%

10%

4.8%

5%

Unskilled Operator$90 - $110

Semi-skilled$120 - $150

Skilled$150 - $180

Low turnover

Standard working hours (48 hours per week)

Low absenteeism

Average wage (pesos per day):

Demographics

- Non-union environment

- More than 60% of the State budget is invested in education

- Pioneers and National Leaders in Linkage Programs

- Hard working, skillful and competitive labor cost

Top Private and Public Universities with International Standards.

51 Universities in Baja California

Total No. of Students enrolled: 90,455

Students enrolled in Engineering programs: +22,000

2014 engineering graduates: 1,964

PRO-BUSSINESSCOMMUNITY

HIGH SKILLED AND STABLE HUMAN RESOURCES

Mexicali Industry

Total No. of Students enrolled: 90,455

Students enrolled in Engineering programs: +22,000

2014 engineering graduates: 1,964

170 manufacturing companies (80% are IMMEX approved).

IMMEX companies employs more than 54,000

Kenworth, Honeywell, Furukawa Pilkington, CCN Group, Alu-Wheel Uni-Pol, Isoclima, are some of the automotive companies in Mexicali.

28 aerospace industries

Industrial Park & Lands

25 industrial parks including one Aerospace Park

World Class Infrastructure with International Standards

Building Availability

More than 3’000,000 sq.m2

available

phoenix

CalexicoYuma

mexicalitijuana

san diego

Los angeles

san francisco

san josÉ

rosarito

ensenada

Mexicali Connectivity

Air

Ground

International Airport with direct flights

to Mexico’s major cities.30 minute drive to El Centro

40 minute drive to Yuma Intl. Airport that has daily flights from San Francisco via Phoenix or Los Angeles Airport

15 minute drive to Interstate I-8

1 hour drive to Interstate I-10

2 hour drive to San Diego and Interstate I-5

Infrastructure and Logistics

Location allows full integrationof communication systems with therest of the world

Telnor telecommunications provides over 80 years experience for the region

Communication

Close to US Market People Availability

Low Turnover Rate

Competitive Labor Cost

Manufacturing is The Employment

of Choice

Time Zone

Real State Opportunities

Supplier Opportunities

How does Baja California partner with your strategy?

Location50% 50%

People

Water Supply

Colorado Rivermain source of water for the State

Binational agreement between Mexico and US that guarantees 1,850 million m3 of water per year.

Mexicali provides water to the rest of the State via Mexicali-Tijuana Aqueduct.

ElectricityFirst state in Mexico to invest in a renewable energy infrastructure (La Rumorosa I Wind Farm 10 MW)

CFE’s transmission system in Baja California is part of the Western Electricity Coordinating Council (WECC) and part of a integrated energy market.

Second largest Geothermal facility in the world providing 540 MW per year.

Two private companies producing more than 1,800 MW-Sempra Energy produces and exports 775 MW to California

-Intergen produces 1,100 MW and sells 300 MW to supply local market.

Only Mexican State with a self-supply program that allows industry to have savings for up to

50% in “peak hours”

Natural Gas

Baja California has a storage and distribution terminal that ensures the current and future demand of this fuel.

The price in Baja California is approximately 16% cheaper than Central Mexico

Natural gas is provided by IEnova- Sempra Energy and offers the most competitive price nationwide.

Port of Ensenada

Closest Mexican seaport to Asia

Connected to 64 ports in 28 countries: Hong Kong, Japan, Australia, Singapore, South Korea, South America, among others..

Due to the location the Port allows access to the main commercial exchange regions in the world.

Long Beach Seaport, USA is a 3 hour drive from Baja California

Ensenada Port is currently expanding capabilities and size.

Railroad ConnectionRailroad cargo service is provided by a Mexican-American association (Ferromex and Union Pacific).

Mexicali is the only city with a railroad interconnection with the State of California.

Daily border crossing with a option to expand operations.

Mexicali is the only border city that has a Intermodal services facility owned by Ferromex.

50% of the capacity is currently in use.

Mexicali

calexico

Long beach

tucson

phoenix

el paso

colton

las vegas

fresno

stocktonSan francisco

roseville reno

pocatello

ogden

denver

amarillo

lubbock

eagle pass

san antonio

ft. worthdallas

oklahomacity

Wichita

omahanorth plattecheyenne

topeka

Kansas City

st. louis

des moines chicago

milwaukee

minneapolis/St.Paul

duluth

Little Rock

memphis

Pine bluff

Sheveport

livonia

new orleans

texarkana

houston

laredo

brownsville

salt lakecity

eugene

Portland hinkle

spokane

seattle

oakland

los angeles

Nogales

Nacozari

hermosillo

guaymas

Tepic

Ciudadvictoria

Monterreysaltillo

Torreón

durango

Chihuahua

Ciudad Juárez

presidioojinaga

zacatecas

CiudadFrontera

querétaro

Ciudad deméxico

puebla

Veracruz

tampico

Altamira

coatzacoalcos

MAnzanillo Colima

LosMochis

aguascalientes

Topolobampo

Mazatlán

Culiacán

GuadalajaraIrapuato

Railroad Connection

South

Border Crossing in Mexicali

Capacity of more than 2,500 containers per day. Working on a expansion of the East Border (Personal & Commercial).

Average commercial crossing time: 1 hour.

State Goverment

West Border Crossing

East Border Crossing

EastTo Sonora

WestTo Tijuana

Education

Engineering Programs

Public & Private Universities that offers Educational Programs to supply the demand of industrial sectors

CETYS Universidad is the only Institution in Mexico accredited by the Western Association of Schools and Colleges (WASC), 1 of 6 accreditor institutions of higher education in North America

Industrial Cybernetics Civil EngineeringMechatronics

Nanotechnologymechanical Aerospace

Software Developmentelectronicelectrical Industrial Design

Joint e�ort between industrial sector, educational institutions and Government

Salinacruz

51.8251.7751.2150.8650.1049.1449.1148.95

Mexico CityMexicali

MonterreyCiudad Juarez

GuadalajaraTijuana

CancunPuebla

51.1750.9550.750.2349.8749.4749.4148.85

Baja CaliforniaBaja California Sur

QuerétaroD.F.

Mexico CityYucatán

Nuevo LeónYucantán

English Pro�ciency Study

Baja California is the State with the highest English

Proficiency according to a study made in 2014 by EF

English Proficiency Index (a division of EF Education First).

Mexicali, is the city with thesecond highest grade, with a

score of 51.77, only behind of Mexico City.

HIGH TECHNOLOGY

skyworks

honeywell

RESEARCH AND DEVELOPMENT

Mexicali Research and Technology Center

Development of technologies for future commercial aircrafts

Considered as the first of its kind worldwide

Generates more than 350 jobs; 75% is represented by Mexican engineering talent

Over 40 years of experience in semiconductor industry

Enables mobile connectivity through semiconductor innovation

Provides assembly, test and finishing services for a wide portfolio of semiconductors solutions

Winners of the National Quality Award 2013

Why Baja California?

Closeness to the California and North American Markets

Infrastructure and communicationdevelopment

Young, educatedand service orientedpopulation.

Knowledge andTechnology transfercapabilitiesPro-Business enviroment and clusters development orientation.

Manufacturing�exibility

contact us at

www.investinbaja.gob.mx

[email protected]

eduardo loyola Secretary of Economic Developmentgoverment of baja california, mexico.