Electric vehicle giant Tesla is reportedly negotiating with the regional government about developing a massive Gigafactory in the metropolitan area of Valencia, Spain.
The estimated €4.5 billion ($4.8 billion) investment in the said production plant could apparently be “significantly higher,” Spanish business publication Cinco Días reports citing people familiar with the matter.
Tesla’s expansion efforts
Tesla has already announced plans to expand its production operation beyond its existing Gigafactories in the US, Europe, and China to Mexico.
In early March, EV-a2z reported that Tesla might start the development of Giga Mexico at any moment following its announcement at Investor Day 2023.
However, the EV giant has no plans to stop or slow down its expansion efforts. CEO Elon Musk recently told The Wall Street Journal that the automaker would “probably” disclose the location of its new Gigafactory by the end of 2023.
Would Tesla pursue Spain for the next Gigafactory?
Interestingly, Spain appears to be Tesla’s top candidate for its highly-anticipated new Gigafactory.
The report claims “that a multinational would invest more the 4,500 million euros” in a new production plant in Valencia. Although Tesla was not specifically mentioned in the primary article by the Spanish publication Levante-EMV, it was noted that the company was “one of several multinationals with which the Valencian government was in dialogue to land in the region.”
As of June 7, negotiations “are very advanced” for prospective investments of ten significant enterprises.
The report also noted Tesla’s investment is expected to be greater than Volkswagen’s €3 billion commitment to a gigafactory for the manufacturing of 40 GWh batteries.
Apparently, the region’s automotive sector is currently not aware of the negotiations. However, the President of the Valencian auto group, Francisco Segura, expressed support for the project.
“If an investment of this magnitude is confirmed, the sector will be at the disposal of the company that has chosen the Valencian Community for its destination.”
Francisco Segura, President of the Valencian auto group
See Also:
- Tesla Giga Mexico construction may begin in March, with new EVs arriving the following year
- Tesla is developing a new production line for the $25,000 EV in Giga Mexico, per Gov. Sepúlveda
- Tesla officially confirmed plans to erect its next Gigafactory in Mexico
- Report: Tesla closing in on Nuevo Leon, Mexico factory announcement
- Tesla supplier CATL, hunting sites for Battery plant in Mexico
Nonetheless, it is hardly surprising that Valencian politicians may welcome the company with open arms, given how fiercely other regions have competed for Tesla’s attention and business.
