Obrador: Tesla coming to Mexico, will bring 'many, many jobs'

Feb. 28 (UPI) -- Mexican President Andres Manuel Lopez Obrador announced on Tuesday that Tesla committed to building a new plant in Monterrey, giving the electric car maker its third plant outside of the United States.

Although Tesla has not publicly made an announcement about the development, Obrador said he spoke directly to Tesla's billionaire owner Elon Musk on Friday and Monday about the deal.

"He was very responsive -- understanding our concerns and accepting our proposals," Obrador said in a news conference, translated by CNBC. "[It will bring] many, many jobs."

Obrador said in an effort to address water issues in the area, Tesla agreed to use recycled water at the plant throughout the entire vehicle manufacturing process.

"There is already an understanding, yes they are going to dedicate the investment to Mexico and the plant is going to be established in Monterrey with a series of commitments to face the problem of water scarcity," Obrador said in the press conference.

Monterrey, which is near the U.S.-Mexico border, had long been viewed as a possible expansion location for Tesla. The EV company already has plants in China and Germany.

The announcement is a welcomed distraction for Obrador, who has faced widespread protest in Mexico City over his plan to reduce the size and budget of the National Election Institute, which oversees voting in the country.

On Sunday, an estimated 100,000 people crowded a plaza near the presidential plaza to protest his plan. Obrador dismissed the protests, saying they are organized by opposition leaders who did not like the results of the latest elections.