You are incorrect. Child would have to be born in the US. He or she would become a naturalized citizen by virtue of having citizen parents.
And Ted Cruz didn’t have U.S. “parents” (plural) when he was born in Canada, either.
I just checked; Ted Cruz’s father didn’t become a U.S. Citizen until 2005!
So, not born on US soil and NOT born to citizen parents (plural).
Hmmmm....