Tesla plans to build a new factory in Monterrey, Mexico, the country's president said Tuesday, confirming speculation that the automaker would set up shop there.
Notably, Tesla has agreed to use recycled water, addressing a major environmental concern in northern Mexico, President Andrés Manuel López Obrador said.
Tesla will share more information about the new factory during its investor day event scheduled for Wednesday afternoon, said López Obrador, who is also known as AMLO.
Tesla CEO Elon Musk is expected to present the long-awaited and often teased Master Plan 3 during the company’s investor day that will be held at the company’s Gigafactory Texas located near Austin. Investors will be able to see its production line and discuss with its leadership team topics like the company’s long-term expansion plans, generation 3 platform and capital allocation, according to the company.
Tesla has several factories in the United States, including in Fremont, California, where vehicles are assembled; a plant near Sparks, Nevada, which is a joint project with Panasonic; and its headquarters in Austin, Texas. Tesla also has factories near Berlin and Shanghai.
Mexico, particularly states near the U.S. border, has been a hotspot for automotive manufacturing for decades. U.S. automakers Ford and GM, German automaker Volkswagen and Japanese companies Honda, Nissan and Toyota have vehicle assembly plants in Mexico. GM, Kia and Stellantis have factories in Monterrey. Several automotive suppliers, including Continental and Faurecia, have plants there, making Mexico critical to the industry's supply chain network.