According to a report from Cinco Dias, Tesla is currently in discussions with Valencia’s regional government in Spain to set up a car factory. The sources for this information requested anonymity due to the sensitivity of the talks, reports Reuters.
The investment for the proposed factory by Tesla could exceed 4.5 billion euros ($4.83 billion), as indicated by the newspaper.
A spokesperson from the Valencia government confirmed to Reuters that meetings and dialogues have taken place with an undisclosed company regarding a “large automobile investment”. However, the representative declined to reveal more information, citing the confidential nature of these discussions.
Tesla has yet to provide a response to a request for comment on this matter, and Spain’s central government has declined to comment as well.
Meanwhile, German automobile manufacturer Volkswagen has previously announced plans to invest up to 3 billion euros in a battery production facility in Sagunto, a town located in the Valencia region.
As Europe’s second-largest car producer, Spain is leveraging European Union COVID pandemic recovery funds to entice automakers to invest in both battery and electric vehicle production. This strategic move aligns with the EU’s plans to phase out thermal cars.
