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Lopez Obrador made the announcement after a call with Tesla Chief Executive Elon Musk on Monday, which followed a separate conversation he said the two had held late last week.
Speaking at a news conference, Lopez Obrador said Tesla would likely give more details of its plans on Wednesday, and that the new plant would be very big and create many jobs.
The call between the two took place after Lopez Obrador had on Friday stirred fears that he could block the investment in Monterrey if water was scarce in the arid region.
The president said Musk had understood the challenge posed by water scarcity in the region, and that the company would be making a series of commitments as part of the deal.
