Spanish newspaper, Cinco Días reported on Thursday, citing unidentified sources close to the discussions, that U.S. electric car manufacturer Tesla (NASDAQ:TSLA) is in talks with the leaders of the regional government of Valencia in Spain to build a car factory in the metropolitan area.
During the Mediterranean Tribune Europe Forum on May 19, Ximo Puig, the president of the Generalitat, revealed that his administration was actively engaged in high-level negotiations with ten major companies, aiming to attract investments that could amount to €24.4 billion (€1 = $1.0737) and generate 43,000 direct job opportunities. Tesla was among the numerous multinational corporations engaged in discussions with the Valencian government regarding their potential establishment in the region.
The Generalitat acknowledged yesterday that the talks with Tesla "are very advanced". However, the name of the company he was speaking of was not known at the time. If it is confirmed, Valencia will become a great center of the Spanish automobile industry.
Spain, being the second-largest car producer in Europe, is making use of European Union COVID pandemic recovery funds to attract carmakers for investments in battery manufacturing and electric vehicles. By tapping into these funds, Spain aims to strengthen its foothold in the automotive industry and foster the adoption of greener and more sustainable transportation options.
Shares of TSLA are down 0.45% in premarket trading on Thursday.