Tesla Inc (NASDAQ:TSLA) has committed to building a plant in Monterrey in northern Mexico, confirmed Mexico’s president Andrés Manuel López Obrador on Tuesday.
Per an AP report, López Obrador said the promise came from Tesla CEO Elon Musk in phone calls between the pair on Friday and Monday.
He did not share details, such as the size of the investment or what the plant would produce, stating that Tesla planned to release more details on Wednesday when the company is holding its widely anticipated Investor Day.
READ: Tesla CEO Elon Musk set to reveal details of ‘Master Plan 3’ at upcoming Investor Day: PREVIEW
The confirmation follows months of rumors that Tesla was planning to announce a plant project in Mexico, with Monterrey long considered a candidate for Tesla investment due to its highly industrialized nature and proximity to the US border.
López Obrador had previously ruled out a Tesla plant in the arid northern state of Nuevo Leon, where Monterrey is the capital, over concerns around factory water use in a region that has experienced water shortages.
But he said on Tuesday that Tesla has committed to addressing those concerns, including using recycled water. “There is one commitment that all the water used in the manufacture of electric automobiles will be recycled water,” López Obrador said, per AP’s report.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie