Tesla to Build Plant in Nuevo León State, Mexico’s AMLO Says

The factory would be Tesla’s first south of the US border and part of Musk’s plans to expand global manufacturing

Tesla Motor Inc. associates work on the Model S electric car at the company's factory in Fremont, California.
By Carolina Gonzalez and Maya Averbuch
February 28, 2023 | 09:48 AM

Bloomberg — Tesla Inc. (TSLA) will build a new plant in Monterrey, Mexico, the nation’s president announced, ending weeks of speculation over where the maker of electric cars would choose to operate in the country.

President Andres Manuel Lopez Obrador said Tuesday that the company will build the plant with a series of commitments to address the problem of water scarcity. AMLO, as the president is known, had a call with Tesla Chief Executive Officer Elon Musk on Monday.

More details will be announced Wednesday, AMLO said. The automaker has an investor day scheduled then.

The leader of the Latin American nation had previously raised concerns about the lack of water for Tesla to build in northern Mexico. On Friday, he reinforced the message by saying the company wouldn’t receive permits if there wasn’t enough water in that region.


The factory would be Tesla’s first south of the US border and part of Musk’s plans to expand global manufacturing, adding to the new plants in Austin, Texas, and Berlin. The uncertainty over the location in Mexico touched off a marketing battle between different states, whose leaders sought to promote their appeal for businesses.

Tesla’s Plans to Build a Plant In Mexico Remain Shrouded In Secrecy

The electric car industry has grown in Mexico mainly as foreign demand for the vehicles continues, with BMW announcing a new investment of €800 million in the state of San Luis Potosi. Other automakers, such as General Motors, have also announced that they will are expanding their electric auto production in the country.

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