Mexican President Lopez: an agreement has been reached that Tesla will build a new factory in the country.

CTOnews.com, February 28 (Xinhua) Mexican President Lopez announced on Tuesday that the government and Tesla have reached an agreement on the company's plan to build a new factory in the northern city of Monterrey.

Tesla will make a series of promises when building the factory, including the use of recycled water throughout the manufacturing process of electric vehicles, in order to face the problem of water shortage.

"I would like to thank Musk for his respect, attention and understanding of solving the problem of water shortage," Lopez said. " More details will be announced on Wednesday, when Tesla will hold an investor day, where the new factory will be very large and create many jobs, he added.

Lopez, who made the announcement after a phone call with Tesla CEO Elon Musk on Monday, said the two had a separate conversation over the weekend.

CTOnews.com has previously reported that Tesla's "Investor Day" will be held at 4 p.m. et on Wednesday (5 a.m. on Thursday, Beijing time), and the suspense of Musk's "Master Plan Part 3" will soon be revealed. Tesla will also talk about long-term expansion plans, third-generation vehicle platforms, capital allocation and other topics, and the company is also expected to launch a cheaper model.