The decision, which President Andres Manuel Lopez Obrador said the company will detail on Wednesday, would help Mexico build on theof combustion-engine vehicles the industry already supplies to the US every year. American and European manufacturers have thus far destined most of their EV factories for the US market in American states, though BMW and General Motors Co. have announced new investments in Mexico in recent months that will ramp up EV exports to the US.
The arrival of Tesla in Mexico is also a feather in the cap for Lopez Obrador, though he didn’t get his wish for the factory to be located in an economically deprived state in the south of the country. The president said he wrung environmental commitments from Tesla Chief Executive Officer Elon Musk on aMonday, including using recycled water throughout the manufacturing process — a pledge Lopez Obrador sought for a region where water has become scarce.
“He was very responsive, understanding our concerns and accepting our proposals,” said AMLO, as the president is known for short. “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 holds an investor day on Wednesday, and the company is likely to detail the announcement then, Lopez Obrador said. Additional commitments will also be announced next week, he said. Nuevo Leon Governor Samuel Garcia cheered the decision in a tweet.Lopez Obrador had said as recently as last week that Tesla wouldn’t receive permits if there wasn’t enough water in the area of the factory site.
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