Tesla is planning to build a new factory south of the U.S. border
The new plant for the electric car firm will be about a nine-hour drive from Texas, in Mexico.
Mexico had previously raised concerns about how water demands from the factory might affect the region.
But the Mexican President says he had won commitments from Tesla boss Elon Musk that had helped ease those worries.
Mexico is trying to position itself as a winner as tensions between the U.S. and China disrupt traditional supply chains.
This marks Tesla’s third factory outside of the U.S., after the firm opened plants in China and Germany.
Tesla is expected to share more to investors, soon.
