Tesla Inc. will build a new plant in Monterrey, Mexico, announced the nation’s president, ending weeks of speculation about where the electric car manufacturer would choose to operate in the country.
President Andres Manuel Lopez Obrador said Tuesday that the company will build the plant with a series of commitments to address the problem of water scarcity. AMLO, as the president is known, had a call with the CEO of Tesla, Elon Muskon Monday.
will be announced more details on Wednesday, AMLO said. The automaker has its Investors Day scheduled for then.
Tesla surprises with its results and confirms its long-term plan
The leader of the Latin American nation had previously raised his concern about lack of water for Tesla to operate in northern Mexico. On Friday, he reinforced the message by saying that the company would not receive permits if there was not enough water in that region.
The factory would be Tesla’s first in the southern United States and part of Musk’s plans to expand global manufacturing, adding new plants in Austin, Texas and Berlin.
Uncertainty over the location in Mexico sparked a marketing battle between different states, whose leaders tried to promote its attractiveness to businesses.
Automotive industry in Mexico
The electric car industry has grown in Mexico mainly due to the external demand for said vehicles. BMW announced in early February a new investment of €800 million in the state of San Luis Potosí.
Other car manufacturers, such as General Motors, have also announced that will expand their production of electric cars in the country.
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