The northern Mexican state considered the front-runner to land a major investment from Tesla Inc lacks water, Mexico's president said on Monday, adding he would urge the electric automaker to consider access to basic services before it decides where to land.
Tesla has been scouting sites to open its first plant in Mexico, with the northern state of Nuevo Leon at the U.S. border emerging as a top contender, followed by the central state of Hidalgo.
The U.S. company has not yet made a decision, President Andres Manuel Lopez Obrador told a news conference.
"There are favorable conditions in Nuevo Leon. They have a skilled workforce, they have engineers, it's very close to the border," he said. "But the lack of water?"
When asked by a reporter if Nuevo Leon had been ruled out, Lopez Obrador answered, "There's no water," without providing further details.
Lopez Obrador said he would speak with Tesla executives to emphasize the need for careful planning around resources such as water, electricity and other services.
Foreign Minister Marcelo Ebrard last week said Lopez Obrador would speak directly with Tesla's Chief Executive Elon Musk.
Lopez Obrador added that Hidalgo is an option, and Mexico's southeast region, where he said water is abundant, could also be attractive.
"There's water, there's gas, there's electricity ... that's part of what we want to make known," the president said.
(Reporting by Raul Cortes, Kylie Madry and Daina Beth Solomon; Editing by Stephen Eisenhammer and Marguerita Choy)
