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Mexican president says Tesla will build a new plant in Mexico

Pedestrians walk past the Tesla Motors official authorized car dealer store in Hong Kong.

Sopa Images | Lightrocket | Getty Images

Tesla will build a new plant in Monterrey, Mexico, and adhere to a series of commitments to address water scarcity, the nation’s president announced at a press conference Tuesday.

President Andrés Manuel López Obrador, or AMLO, as he is known, said Tesla agreed to use recycled water at the plant throughout the entire vehicle manufacturing process, even down to the cars’ paint. He said the company will reveal more information about the new plant during its Investor Day event Wednesday.

AMLO said he spoke to Tesla CEO Elon Musk on Friday and Monday.

“He was very responsive— understanding our concerns and accepting our proposals,” AMLO said. CNBC translated the president’s remarks from Spanish to English.

AMLO said the plant will be a considerable investment, and that it will result in “many, many jobs.”

Monterrey is an industrial city near the U.S.-Mexico border, and it has long been considered a frontrunner for investment from Tesla. The company currently has two other car plants outside of the U.S. located in China and Germany.

“I want to thank Mr. Elon Musk, who was very respectful and understood the importance of addressing the problem of water scarcity,” AMLO said.

Tesla’s Investor Day will be live-streamed on Twitter and YouTube from Texas Wednesday.

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