Tesla Plant in Northern Mexico Confirmed, Reveal on Investor Day: President

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After Tesla’s Mexico Gigafactory deal was seemingly cast into murky water last week due to water scarcity issues, the company will move forward with the plant in the state of Nuevo León.

Tesla will build a Gigafactory in Monterrey, Mexico with added commitments to addressing water supply issues in the region, according to a statement from President Andres Manuel Lopez Obrador on Tuesday, reports Bloomberg.

The statement came after Manuel Lopez Obrador had a phone call with Tesla CEO Elon Musk on Monday to discuss options for the plant. AMLO, as the Mexican President is often colloquially referred to, discussed multiple options with Musk during the call for helping to conserve water.

“He was very responsive, understanding our concerns and accepting our proposals,” AMLO said. “I want to thank Mr. Elon Musk for being very respectful, attentive and understanding of the importance of addressing the problem of water scarcity.”

Some of Tesla’s commitments include utilizing recycled water in auto manufacturing and paint, according to AMLO. He also said more details would be shared on Wednesday when Tesla is holding its Investor Day event, and even more details are set to be shared next week.

Nuevo Leon Governor Samuel Garcia celebrated the announcement by saying, “Mexico won, NL won, we all win!”.

A Tesla Gigafactory in Mexico has been rumored since at least last June when Musk referenced the automaker looking at sites in Mexico and Canada for its next plant.