MADRID — Tesla is in talks with the leaders of the regional government of Valencia in Spain to build a car factory, the Spanish newspaper Cinco Dias reported, citing unidentified sources close to the discussions.
The company’s total investment in the factory could surpass 4.5 billion euros ($4.83 billion), the newspaper said in its report on Thursday.
A spokesman for Valencia’s regional government told Reuters it had held meetings and conversations with an unidentified company about a “large automobile investment,” but declined to give more details, citing the confidentiality of the negotiations.
Tesla did not immediately respond to a request for comment.
Volkswagen has already said it plans to invest as much as 3 billion euros in a battery factory in the town of Sagunto in the Valencia area.
Spain is Europe’s second-largest car producer, and is using European Union COVID pandemic recovery funds to attract automakers to invest in the manufacture of both batteries and electric vehicles. The EU plans to phase out combustion-engine cars.
Tesla has so far established one factory in Europe, a facility near Berlin that produces the Model Y crossover, which was the best-selling car overall in Europe in the first quarter — as well as globally. Tesla’s other top-seller in Europe, the Model 3, is imported from Shanghai.
CEO Elon Musk has said he is aiming to sell up to 20 million cars a year, with a network of 10 to 12 “gigafactories” that would build up to 2 million units a year each.
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