Tesla selects Monterrey, Mexico as the site of its next Gigafactory

Tesla's Investor Day isn't here quite yet, but we may already know one of the company's biggest announcements. According to Mexican President Andrés Manuel López Obrador, Elon Musk has promised to build the automaker's next gigafactory in northern Mexico — specifically in Monterrey, the capitol of the northern state of Nuevo Leon. It's a deal that's been in the works for some time: Late last year, Musk visited Nuevo Leon to meet with the Governor of the region.

Even so, there were some questions about if Tesla could get approval to build in the area — after Monterrey suffered severe water shortages in 2022, President López Obrador said the government would not grant permits for water-hungry factories. After a series of phone calls with Elon Musk, Tesla was granted an exception. “There is one commitment that all the water used in the manufacture of electric automobiles will be recycled water,” López Obrador said of the call, adding that the factory would also represent "a considerable investment and many, many jobs."