Tesla will build a new assembly plant in northern Mexico.According to people familiar with the matter,the transaction is worth more than$5 billion.

The plant will be built in Santa Catarina in the Greater Monterey region of northern Mexico.It is reported that Tesla will produce about 1 million cars in Mexico every year and sell them to domestic and international markets.

Mexican President Evrador said on Tuesday:”We have reached a consensus.They will invest in Mexico and the factory will be built in Monterey.They will make a series of commitments to help solve the problem of water shortage.”

Ofrador said that he reached an agreement with Tesla CEO Elon Musk by telephone on Monday.”He was very happy to accept it.He understood our concerns and accepted our suggestions.We will release these suggestions from tomorrow.This will mean a considerable investment and many,many jobs.”