Tesla May Be Negotiating Plans For A Huge New Factory In Spain

Sources familiar with the deal say it will be a massive investment, topping that of rival automakers.

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Steven Loveday

By: Steven Loveday

Jun 8, 2023 at 10:32am ET

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Rumor has it, though some would call it more than rumors, Tesla is working on negotiations to begin plans for an electric vehicle Gigafactory in the area of Valencia, Spain. Local news reports suggest it will require an investment of over $4.5 billion.

Tesla hasn't made any indication it plans to stop expanding. In fact, the opposite is true. The company intends to widen its global reach and its annual production capacity in the years to come. With a new Tesla factory coming in Mexico, but not yet underway, now we learn that Elon Musk has been in Spain and it looks like there may be a deal brewing there as well, not to mention Tesla's new prospects for forward movement in India.

The local government in Spain already went so far as to confirm that it is and has been meeting with the automaker related to a potentially substantial investment in the area. However, it never confirmed it was Tesla, and there were very few details.

According to local newspaper CincoDias, the company is certainly Tesla. The newspaper writes that everything known so far indicates Tesla will eventually move to produce EVs in Spain. It notes that Tesla is already in negotiations with the Generalitat Valenciana to construct an EV assembly factory in the area around Valencia. Sources close to the project confirmed it's a reality, but due to a confidentiality agreement signed by the Generalitat, no one on the inside appears to be talking.

Interestingly, even though the news surrounding Tesla and Spain has been mentioning an EV manufacturing facility, the newspaper also compares it to Volkswagen's upcoming EV battery factory in the same area. According to CincoDias, Tesla's investment of over $4.5 billion would exceed what VW is investing in its project.

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The newspaper notes that Tesla was represented in recent meetings with the Valencian government. On May 19, Generalitat president Ximo Puig showed off the regions that could soon be home to some 10 different major companies.

Check Out More Related Tesla News:

Tesla Submits New Factory Proposal To Indian Government: Report

Tesla Will Reveal New Gigafactory Location By The End Of The Year: Elon Musk

Tesla CEO Elon Musk hasn't commented on the news or rumors, and despite attempts to reach out to Tesla, it doesn't interact with the media, especially in the US. At this point, this is still a developing story. If more details become known, we'll share them here. In the meantime, head down to the comment section and let us know what you think.

Source: Electrek

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