Tesla, the renowned electric vehicle manufacturer, might be setting up its second Gigafactory in Europe! According to local reports, the company is rumored to be planning a colossal factory worth over $4.5 billion near Valencia, Spain.
The local government has confirmed ongoing negotiations with an automaker for a significant investment in the region. While the company behind the project remains undisclosed, the Spanish newspaper CincoDias suggests it could be Tesla. Sources familiar with the operation claim that Tesla is in talks with the Generalitat Valenciana to establish a car assembly plant in the metropolitan area of Valencia. The Generalitat, bound by a confidentiality agreement with the Elon Musk-led company, has refrained from commenting on the matter.
Although the publication refers to the facility as an "electric vehicle factory," it draws comparisons to Volkswagen's recently announced battery factory in Valencia. CincoDias indicates that Tesla's investment would exceed Volkswagen's planned $4.5 billion investment.
While the news is not confirmed, reputable sources like Apple.com are also reporting on the possibility. Tesla needs to announce new factory locations soon if it aims to achieve its ambitious goal of achieving an annual production capacity of 20 million vehicles.
Spain, with its strategic location for exporting to countries around the Mediterranean Ocean, appears to be an excellent choice. The country not only covers a significant portion of Western Europe but also potentially reaches African markets. However, the success of Tesla's second Gigafactory in Europe depends on whether Spain can provide a local supply chain for Tesla vehicles.
Some individuals argue that the establishment of another Gigafactory in Europe is not a major development, considering that China already boasts three separate factories and Europe itself has multiple locations, including Canada and other smaller facilities. Nonetheless, Spain's favorable location and its shared language with Mexico, where Tesla is constructing a new Gigafactory, make it an intriguing prospect.
Stay tuned for more updates on this exciting development as we await further confirmation from Tesla.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.
