López Obrador said Tesla would provide more details on its plans on Wednesday. (Representative)
new Mexico:
Electric vehicle maker Tesla Inc will build a major new plant in the northern Mexican city of Monterrey, President Andres Manuel Lopez Obrador said on Tuesday, amid fears his government could block the deal over water scarcity.
The news boosts Mexico, which is seeking to benefit from geopolitical tensions by attracting investment and undermining Asia’s dominant position in manufacturing industries.
Lopez Obrador said the two sides had reached an agreement on Monday after a call with Tesla Chief Executive Elon Musk, following a separate conversation he said the two held late last week.
“It will represent a lot of investment and many jobs,” López Obrador told reporters, adding that Elon Musk was receptive to Mexico’s concerns and accepted its proposals.
Speaking at a news conference, López Obrador said Tesla would provide more details on its plans on Wednesday.
On Friday, López Obrador raised fears that he could block investment in Monterrey if the arid region faces water shortages.
The president said Mr Musk understood the challenge posed by water scarcity in the region, and that the company was making a series of commitments as part of the deal.
The discussions around Tesla have been a major test of how investors react to López Obrador’s resource nationalism, which has fueled persistent misgivings among business groups.
There has been speculation for months about the possibility of Tesla moving to Mexico, and the plant is set to become one of the major investments of the López Obrador administration.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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