According to the Spanish newspaper Cinco Dias, Tesla is in talks with the regional government of Valencia, Spain, to establish a car factory.
Unidentified sources close to the discussions claim Tesla's total investment in the factory could exceed €4.5 billion ($5.4 billion). Valencia's regional government confirmed holding meetings with an undisclosed company about a significant automobile investment without revealing further details due to the confidentiality of negotiations.
Valencia is home to a Ford car manufacturing facility and will host Volkswagen's 40 GWh battery plant, with production scheduled to start by 2026.
Spain, the second-largest car producer in Europe, plans to use EU COVID pandemic recovery funds to attract automakers to invest in both electric vehicles and battery production, as the EU has announced its intentions to phase out thermal cars. Tesla and Spain's central government declined to comment on the report.
