On Monday, Mexico’s President Andres Manuel Lopez Obrador spoke about the potential for Tesla Inc. to invest in the northern Mexican state of Nuevo Leon. While it is considered the front-runner for the electric car producer’s first plant, the President highlighted the lack of water in the area and the benefits of investing in the poorer southern region, where he has fought to boost development. He also noted that certain northern zones ban water extraction and the southeast holds 70 percent of Mexico’s water.
Lopez Obrador said he would emphasize to Tesla the need for careful planning around water, electricity, and other services. He is scheduled to speak directly with Tesla CEO Elon Musk about the location of the plant.
In 2020, the President’s administration scored a victory when Constellation Brands decided to build a brewery in the southeastern state of Veracruz after a project in the arid northern city of Mexicali was scrapped due to water scarcity. Following Lopez Obrador’s remarks, Nuevo Leon Economy Minister Ivan Rivas stated that water access had not been an issue for companies or held back investment.
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