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Tesla will build a new factory in Monterrey, Nuevo León, Mexico, the country's president said. The company is committed to solving the problem of water scarcity by using recycled water at the plant throughout the entire vehicle production process.

Tesla will build a new factory in Monterrey, Nuevo León, Mexico, President Andres Manuel López Obrador, or AMLO as he is known, said at a news conference on Tuesday. The company has committed itself to a series of measures to address the problem of water shortages. Tesla has agreed to use recycled water at the plant throughout the entire car manufacturing process, right down to painting the cars. The company will reveal more information about the new factory during Investor Day.

AMLO said it spoke with Tesla CEO Elon Musk on Friday and Monday during video calls. The company sought to locate a factory in Nuevo León, and the president raised the issue that there was not enough water in the region. As a result of the discussions, the parties found a solution.

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

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

The Tesla factory will create thousands of jobs. In addition, jobs will be created during its construction. Tesla will make significant investments in Mexico, which is a huge positive effect for the country.

Monterrey is an industrial city near the US-Mexico border in Nuevo León. In October, Musk visited the state and met with local officials to discuss future investments.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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