Tesla is planning to build a new factory in Monterrey, Mexico, according to Mexican President Andrés Manuel López Obrador.
The announcement confirms earlier speculation that the automaker would set up shop in the country. Notably, Tesla has agreed to use recycled water in the new factory, addressing a major environmental concern in northern Mexico.
Tesla CEO Elon Musk is expected to unveil the long-awaited and often teased Master Plan 3 during the company’s investor day event, which will be held at its Gigafactory Texas located near Austin.
During the event, investors will be able to see Tesla’s production line and discuss topics like the company’s long-term expansion plans, generation 3 platform, and capital allocation with its leadership team.
Mexico has been a hotspot for automotive manufacturing for decades, with states near the U.S. border serving as key locations for major automakers like Ford, GM, Volkswagen, Honda, Nissan, and Toyota.
Monterrey already hosts factories for GM, Kia, and Stellantis, along with plants for several automotive suppliers. With its new factory in Monterrey, Tesla will join the roster of major automakers with a presence in the region.