Mexican President Andres Manuel Lopez Obrador has confirmed that Monterrey, Nuevo León, will be the location for Tesla’s new plant in Mexico. This announcement comes after months of speculation, with Elon Musk and other high-level Tesla executives spotted in Monterrey back in October 2022.
However, concerns about water scarcity in the region were raised by the Mexican President last week, potentially jeopardizing the new factory. AMLO suggested that the factory be built near a new business hub in Mexico City instead. Bloomberg reports that these concerns were addressed during a phone call between the two on Monday, with Musk agreeing to utilize recycled water throughout the entire manufacturing process.
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“We thank Mr. Elon Musk for being very respectful, attentive, and understanding of the importance of addressing the problem of water scarcity,” said AMLO.
More details about the plant are expected to be announced during Tesla’s Investor Day tomorrow. The new factory is anticipated to be another Gigafactory, helping the automaker reach its goal of producing 20 million vehicles per year by the end of 2030. Tesla estimates that achieving this target will require the construction of at least seven more gigafactories, including the one in Monterrey.
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Tesla’s investment in Mexico follows other automakers such as Ford, BMW, and General Motors, who have also expanded production in the country. Stellantis is reportedly eyeing a state south of the border for similar reasons.
The confirmation of Tesla’s new plant in Monterrey is a positive development for Mexico, providing new job opportunities and economic growth. The commitment to addressing water scarcity concerns is also a welcome assurance of responsible and sustainable manufacturing practices.
