Electric vehicle giant Tesla is reportedly in discussions with Italian government officials about a potential local production of electric trucks or vans in the country, Il Sole 24 Ore reports, citing some industrial sources.
Discussions progress
According to the report, Italy’s Ministry of Enterprises and Made in Italy (Mimit) has advanced its negotiations with several automakers. However, Tesla apparently has the “most serious contacts so far.”
The discussions revolve around the possibility of constructing a new factory for electric trucks and/or electric vans.
“According to some industrial sources, the Ministry of Business and Made in Italy (Mimit) in recent weeks has actually deepened the dialogue with a possible new automotive manufacturer, but the news is that the most serious contacts would be with Elon Musk’s Tesla for a possible production of electric trucks and/or vans, a line partly still in planning, and therefore not of cars.”
Il Sole 24 Ore
This news comes after Italy’s Minister for Business and Made in Italy, Adolfo Urso, announced last month that the government and the Musk-led company are in talks to build a new local factory.
Potential investment
The possibility of Tesla investing in local production in Italy remains unclear, especially considering the report’s indication of electric truck and/or van manufacturing.
As of now, Tesla only produces the electric pickup Cybertruck in Texas. Meanwhile, the Class 8 electric truck Semi undergoes production in Giga Nevada.
In hindsight, Tesla CEO Musk previously asserted that the American EV giant could build the Tesla Semi in Giga Berlin in Europe.
In addition, Tesla currently has no electric vans in its lineup. However, long-standing rumors claim the company is developing a van-like electric people-mover for Elon Musk’s The Boring Company.
Italy’s targets
Italy set a target of producing at least 1.3 million vehicles per year. Of that total, passenger cars are expected to account for one million units. Meanwhile, vans will make up the other 300,000 units.
The achievement of this target is crucial for the country to preserve its automotive industry amid the challenges brought on by the shift to electric vehicles.
Stellantis is currently the only major automaker in the country. However, its local production output last year was insufficient for Italty to achieve its automotive targets.
“We are aware that it is impossible for Stellantis alone to reach the target of one million cars produced in Italy.”
Italy Industry Minister Adolfo Urso
Therefore, the government is trying its best to court major companies like Tesla to hit its goals. Notably, it also expects major investments from three Chinese electric vehicle players, BYD, Great Wall, and Chery. According to the report, Chery and the government officials have already reached a more advanced discussion in February. In fact, Mimit is already inspecting former industrial locations as potential sites for Chery’s local factory.
As for Tesla, it remains unclear if there would actually be an investment for local production in Italy. For context, the Musk-led company seems also near to achieving its long-standing dream of penetrating the Indian market with lower import taxes in exchange for a local factory.
