On Monday morning, President Andres Manuel López Obrador is set to hold a call with Tesla Inc. Chief Executive Elon Musk, as confirmed by two officials. This conversation comes after the Mexican leader revealed during a regular morning news conference that he would be talking to the “owner” of the electric vehicle maker. However, it remained unclear if Lopez Obrador was referring to Musk, who is the company’s largest shareholder.

Nevertheless, two Mexican officials later confirmed that the president was indeed referring to Musk. It remains to be seen what the two leaders will discuss, but it is likely to center around Tesla’s operations and potential investment in Mexico.

Exploring the potential benefits and risks of Tesla’s expansion in Mexico

In recent weeks, concerns have been raised regarding Tesla’s plans to build a plant in the northern state of Nuevo Leon, where the company has been considering investing. On Friday, Lopez Obrador stated that Tesla would be denied permits to build the plant if water is scarce in the arid region. This was the strongest indication yet that the president’s concerns over water supply could become a deal-breaker for Tesla’s plans near the U.S.-Mexico border.

Mexico’s concerns over water supply threaten Tesla’s plans in the country and the environmental and economic implications

Tesla’s operations in Mexico have been subject to scrutiny and criticism in recent years, particularly regarding the company’s use of water and other natural resources. Critics have argued that the company’s manufacturing processes and water usage could exacerbate water shortages in the region, which is already grappling with drought and other environmental challenges.

Despite these concerns, Tesla has expressed a strong interest in expanding its operations in Mexico, which could bring significant economic benefits to the country. In addition to the proposed plant in Nuevo Leon, the company has also considered building a factory in the central state of Puebla.

The upcoming call between Lopez Obrador and Musk is an important development in the ongoing dialogue between the Mexican government and Tesla, as both sides work to address the complex environmental, social, and economic issues associated with the company’s operations in Mexico.

The complex issues at Stake as Mexico and Tesla continue to negotiate

It remains to be seen what outcomes this conversation will yield, but it is clear that it will have significant implications for Tesla’s future in Mexico and beyond.