Mexico’s President Andrés Manuel López Obrador said Tuesday that electric car company Tesla has committed to building a plant in the industrial hub of Monterrey in northern Mexico.
Mexican President Andres Manuel Lopez Obrador gives his regularly scheduled morning press conference at the National Palace in Mexico City, Tuesday, Feb. 28, 2023.
López Obrador said the promise came in phone calls he had Friday and Monday with Tesla head Elon Musk.López Obrador had previously ruled out placing such a plant in the arid northern state of Nuevo Leon, where Monterrey is the capital, because he didn’t want any water-hungry factories in a region that has suffered severe water shortages. But he said Musk’s company had offered several commitment to address those concerns, including using recycled water.
But the city suffered such severe water shortages in 2022 that many homes went weeks with intermittent or no water supply in 2022. The government is building a 60-mile pipeline to bring more water in from a dam to increase the supply. The announcement was a disappointment for more water-rich southern states which had begun jockeying for the Tesla plant after López Obrador’s comments last week.The governor of Nuevo Leon state, where billboards went up last year saying “Welcome Tesla,” crowed about Tuesday’s announcement.Musk at times has floated the idea of building a $25,000 electric vehicle that would cost about $20,000 less than the current Model 3, now Tesla’s least-expensive car.
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