Tesla ends negotiations for factory in Valencia

Tesla has reportedly removed Valencia from its list of potential locations for a new factory. The carmaker is said to have been “very upset” when confidential negotiations with representatives from Valencia were leaked.

Management referred to an “internal leak” in early June. As a result, negotiations have come to a halt, the Spanish Economía Digital reports. According to earlier reports, Tesla considered the Valencia region as an option for the location of a second Gigafactory in Europe after Grünheide in Brandenburg, Germany. At the time, the local government vehemently denied that the company being negotiated with was indeed Tesla, as “unofficial sources” had reported.

According to Economía Digital, Puig now declared that while he was not the “internal leak”, these reports have led to “a serious problem” with Elon Musk’s company. So, for now, the Valencia region will have to be content with Ford’s EV production and the battery plant under construction by Volkswagen’s subsidiary PowerCo in nearby Sagunt.

It was a surprise when Elon Musk announced Grünheide as the location for Tesla’s first European Gigafactory at the ‘Golden Steering Wheel’ awards in November 2019. Although Germany was considered the favourite in the run-up, locations in Lower Saxony, North Rhine-Westphalia, Rhineland-Palatinate, Saarland and Baden-Württemberg were associated with Tesla – the negotiations with Brandenburg took place in absolute confidentiality.

economiedigital.es (in Spanish)