Tesla to open new mega-plant in northern Mexico 

Mexican President Andres Manuel Lopez Obrador announced on Tuesday that electric car company Tesla will open a large plant in northern Mexico.

The new major plant in the city of Monterrey would be Tesla’s third plant outside of the U.S., after opening a factory in Shanghai and another in Berlin. 

Lopez Obrador had previously said he would not open a plant in the northern state of Mexico because of its arid terrain and water shortages. However, the president said that Tesla CEO Elon Musk was “very receptive” towards the concerns and offered to address them.

“There is one commitment that all the water used in the manufacture of electric automobiles will be recycled water,” López Obrador said after a phone call with Musk.

Lopez Obrador said the car company planned to release more details about the mega-plant on Wednesday, adding that it was still unclear what exact models the plant would produce or if it would potentially produce batteries.

According to Mexican Deputy Foreign Minister Martha Delgado, Tesla was investing more than $5 billion in the plant that aimed to produce more than one million vehicles a year. 

“This is going to mean a considerable investment and many, many jobs,” López Obrador said. “My understanding is that it will be very big.”

Monterrey is an industrial city close to the U.S.-Mexico border, about three hours away from Texas. Given its arid climate, the city suffered severe shortages in 2022, leaving thousands of homes with intermittent or no water supply.