Tesla is preparing to invest in a factory in Mexico

US electric vehicle manufacturer Tesla is preparing to invest in a production facility in Mexico. Mexican President Andres Manuel Lopez Obrador said that Tesla would come to Mexico to establish a large automotive factory. Tesla CEO Musk had said for months that he would announce a new factory investment and announce expansion plans at the "Investor Day" event. The company has automobile factories in the US states of California and Texas, as well as in Berlin and Shanghai. US electric vehicle giant Tesla has turned its route to Mexico for its new factory investment. Mexican President Andres Manuel Lopez Obrador said that Tesla would come to Mexico to establish a very large automotive factory and noted that potential battery investments are still pending. It has not yet been announced which models will be produced. The investment is estimated to be worth at least $1 billion in the first phase. This agreement shows the electric vehicle manufacturer's policy of expanding its operations outside the US. A Mexican official said that the facility will be a Tesla "Gigafactory" that can produce semi-trucks, Roadster sports cars and potentially other vehicles. “This is a significant investment and will provide a lot of labor,” Lopez Obrador told reporters. According to the agreement between Musk and Obrador, the newly opened factory will reportedly use recycled water in the entire production process of electric vehicles, including water purification and painting. The company has electric vehicle production factories in the US states of California and Texas, as well as in Berlin and Shanghai. Musk has said for months that he would announce a new factory investment and introduce expansion plans and next-generation vehicle platforms at the “Investor Day” event. Musk is said to want to distance himself from the geopolitical tensions and supply chain disruptions caused by the COVID-19 pandemic, especially by reducing production capacity in Asia. Mexican Foreign Minister Marcelo Ebrard announced the news on Twitter, describing it as “the result of 14 months of patient labor.”