Tesla to build new factory in Mexico despite water fears

Tesla is to build a new factory in northern Mexico, becoming the latest carmaker to ramp up its Latin American operations.

The major plant will be located in industrial hub Monterrey, Mexico’s president, Andrés Manuel López Obrador, announced yesterday.

It will be the electric vehicle maker’s third factory outside the US, alongside plants in Berlin and Shanghai.

Mr López Obrador previously ruled out proposals over fears that the factory’s water demands could result in shortages for the region.

However, Tesla has apparently addressed these concerns, including using recycled water during the manufacturing process.