Tesla’s preferred choice for its potentially-upcoming vehicle production plant in Nuevo Leon, Mexico, has one major roadblock if the automaker eventually lands there: water.
Tesla has been mulling several locations in Mexico for its newest EV production plant, and its ideal location is Nuevo Leon, a Mexican state that is located just south of Texas in the Northern Portion of the country.
While Tesla has considered other locations, including near Mexico City, Nuevo Leon has been the only consistently mentioned region since the automaker has been rumored to be building a new plant in Mexico.
Tesla could run into one major roadblock, according to Mexican President Andres Manuel Lopez Obrador, who believes the automaker could run into a deal-breaking situation with the water supply, something that is in short supply in the area.
When asked if he would allow Tesla to build a plant in Nuevo Leon if that is where the automaker prefers, Lopez Obrador said if there is a water supply shortage, he wouldn’t allow the company to build (via Reuters):
“If there’s water, no. Simply put, we don’t give out permits for that. It’s not feasible.”
López Obrador also said earlier this week that Tesla could run into issues building in Nuevo Leon as water is scarce in the area.
Not only would López Obrador not want Tesla to utilize too much water in the region, but shortages in anything from energy sources to water would potentially be detrimental to the company’s operations.
Tesla is moving to build this facility somewhere in North America to help support demand on the continent. Stoppages in production would only spell trouble for the carmaker, especially as CEO Elon Musk has always maintained Tesla has a supply problem, not a demand problem.