Tesla is reportedly engaged in talks with the regional government of Valencia in Spain regarding the construction of a car manufacturing facility. According to Spanish newspaper Cinco Dias, which cited undisclosed sources familiar with the discussions, the total investment by Tesla in the proposed factory could exceed 4.5 billion euros ($4.83 billion).
While a spokesman for Valencia’s regional government confirmed that meetings and conversations have taken place with an undisclosed company regarding a “large automobile investment,” no further details were provided due to the confidentiality of the negotiations.
As of now, Tesla has not responded to requests for comments on the matter. On the other hand, Volkswagen has already announced its intention to invest up to 3 billion euros in a battery factory located in the town of Sagunto within the Valencia area.
Spain, being the second-largest car producer in Europe, aims to leverage the European Union’s COVID pandemic recovery funds to attract automotive manufacturers to invest in battery production and electric vehicles. The EU itself has plans to phase out combustion-engine cars.
