Tesla Inc. 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’s CEO Elon Musk on Monday.
The plant investment is expected to be about $1 billion, Reuters reported. There was no immediate verification of the plans from Musk or Tesla.
“He was very responsive, understanding our concerns and accepting our proposals,” AMLO said. “I want to thank Mr. Elon Musk for being very respectful, attentive and understanding of the importance of addressing the problem of water scarcity.”
Tesla shares fell 1.1 percent to $205.15 in midday trading.