Tesla To Build Plant In Mexico: Reports

(RTTNews) - Electric car giant Tesla Inc (TSLA) is reportedly planning to build a new plant in Northern Mexico, as the auto giant aims to increase its presence outside of the U.S.

Mexico President Andres Manuel Lopez Obrador on Tuesday said that the plant would be built in Monterrey, which is about a nine-hour drive from Texas. Obrador said Tesla head Elon Musk gave the promise via phone calls he had with him on Friday and Monday.

Obrador did not reveal the size of the investment or what the plant would produce, as the company plans to release more details on Wednesday.

However, according to reports, the new factory is expected to produce "a kind of sport utility vehicle." The Model Y is Tesla's best-selling SUV.

"This will represent a considerable investment and many, many jobs," Lopez Obrador said at a news conference on Tuesday.

This would be Tesla's third factory outside of the U.S. after the firm opened plants in China and Germany in recent years.

The news comes just a few weeks after BMW revealed that it would be investing in a factory in Mexico. Ford also manufactures its electric SUV in the country.