On Tuesday, Mexican President Andrés Manuel López Obrador announced that electric car company Tesla has committed to establishing a major plant in the industrial hub of Monterrey, located in the northern state of Nuevo Leon. This would be Tesla’s third plant outside the United States, following ones in Shanghai and near Berlin. López Obrador stated that the company had made a promise to address the region’s water shortages, such as utilizing recycled water. The president did not provide a dollar amount for the large investment, nor did he specify what the plant would produce. Elon Musk, the head of Tesla, is expected to release more details on Wednesday.
López Obrador also noted that Mexico would not match any U.S. subsidies to win the Tesla plant, referring to the 2022 Inflation Reduction Act. He said that Musk was “very attentive and respectful” of Mexico’s position. At Tesla’s annual investor day on Wednesday, Musk is anticipated to discuss plans for the company’s “Gen 3” vehicle platform, as well as show off the production line at the Austin plant. The Gen 3 vehicle is expected to cost around $25,000, which is $20,000 less than the current Model 3.