Mexico announced that Tesla will build a local factory with an annual production capacity of 1 million vehicles and an investment value of more than 5 billion US dollars.

CTOnews.com, March 1 (Xinhua)-- Tesla will build a factory in Monterrey, capital of the Mexican state of Nuevo Leon, to increase global production to meet Musk's goal of producing 20 million electric vehicles a year by 2030, the Mexican president announced on Tuesday local time.

Mexican President Andries Manuel Manuel L ó pez Obrador said the new plant would be a "considerable investment" and would provide many jobs.

He did not provide details on the size or scope of the facility, but said Tesla would release more details on Wednesday. (CTOnews.com Note: Tesla will hold an investor day today, when Musk is expected to elaborate on the company's plans.)

However, Mexican Foreign Ministry officials say Tesla's factory in Mexico will produce 1 million electric vehicles a year for Mexico's domestic and international markets. (note: the Shanghai super factory currently has a capacity of more than 1.1 million-1.2 million vehicles). And he says the Tesla factory in Mexico is worth more than $5 billion.

Musk said last year that the electric car company may need to add 10 to 12 superplants to its existing facilities in California, Nevada, Texas, New York, Shanghai, China and Berlin, Germany. To increase its car production. The company says it hopes to produce 20 million electric vehicles a year by 2030.

After the Mexican president announced the incident on Friday, he responded to the water shortage (Tesla was denied permission to build a factory in the state of Monterrey because of water shortage), Reuters reported. He said Tesla made a number of commitments to solve the region's water shortage, including a promise that all water used to make electric cars would be recycled water.