Tesla (TSLA) approved to build new Monterrey, Mexico plant

Tesla will reportedly adhere to policies that keep water scarcity in mind with its new manufacturing plant in Mexico.


Tesla is set to establish a new plant in Monterrey, Mexico as announced by President Andrés Manuel López Obrador, also known as AMLO. According to President Obrador (AMLO), as cited by CNBC, Tesla has agreed to use recycled water at the plant through the entire vehicle manufacturing process.

"He was very responsive — understanding our concerns and accepting our proposals," noted AMLO in a statement translated by CNBC. AMLO went on to point out how the new plant will be a considerable investment and will result in “many, many jobs” before thanking “Mr. Elon Musk, who was very respectful and understood the importance of addressing the problem of water scarcity.”

Tesla will reportedly reveal more information about its new plant in Monterrey, Mexico during its upcoming Investor Day event on Wednesday, which will be streamed on YouTube and Twitter.

Prior to establishing its Gigafactory in the drought-stricken region of Brandenburg, Germany, Tesla faced similar pushback over matters of water scarcity. At the time, Tesla's contract with the German government estimated that the expanded factory would use 1.4 million cubic meters of water every year. 

Tesla Gigafactory in Brandenburg, Germany
Tesla Gigafactory in Brandenburg, Germany
© Tesla

In regards to why water scarcity is a key issue in Monterrey as well, it and other cities in northern Mexico have been experiencing a historic water shortage with outlets like The Washington Post reporting, “Reservoirs have been hitting the bottom of their basins. Taps have been running dry for millions of people in the city of Monterrey, where the water shortage was called a matter of national security.”

“People are making lines to obtain a few liters of water… I wonder how it is possible that they reach this level?” said Víctor Magaña-Rueda, a climatologist at the National Autonomous University of Mexico, as cited by The Washington Post. “In March [2022], nobody was talking about the socioeconomic drought, and, all of a sudden, we realized that Monterrey was facing one of the worst droughts ever seen in the area.”

Tesla Gigafactory in Fremont, CA
Tesla Gigafactory in Fremont, CA.
© Tesla

With northern Mexico facing such an extreme water shortage, it makes sense that a new manufacturing plant in Monterrey for a company as large as Tesla would be a concern for residents. As previously mentioned though, Elon Musk has reassured President Obrador that the plant will only use recycled water for every step of its manufacturing process.

We’ll likely hear more about the steps being taken to conserve water during the upcoming Tesla Investor Day event. Until then, be sure to brush up on some of our previous Tesla-related coverage including Tesla reportedly firing dozens of Buffalo employees the day after workers announced unionization plan, and Musk saying that demand for Tesla vehicles in January was the highest seen in company history.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

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