Angry about the leak, Tesla cancels its plan to build a factory in Valencia, Spain

Tesla cancels Valencia factory plan due to leak anger

【PhoneAuto News】In order to further expand production capacity, Tesla is still searching for a new location for its Gigafactory worldwide. As Tesla’s Gigafactories can drive local economy and employment, many countries have shown sufficient sincerity and incentives for Tesla to build factories in their countries. However, recent reports from foreign media have stated that Tesla’s plans to build a new factory in Valencia, Spain, have ultimately fallen through due to leaked information.

Tesla’s Gigafactory

According to foreign media reports, Tesla is currently looking for a location for its next factory, and earlier this month, Valencia, Spain, was considered as a candidate. This is because the Spanish government provided Tesla with an attractive condition, which is that Volkswagen Group will build a battery factory in Spain to supply Tesla with some of its battery needs. However, according to reports from the Spanish digital economy newspaper, negotiations between Valencia and Tesla have completely broken down. According to their sources, the reason for this outcome is a leak, which drew media attention to Tesla’s investment in the country and made Tesla “very angry”.

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Tesla electric vehicles

Although the leak seems to have come from the Governor of Valencia, Ximo Puig, he denies being the mastermind behind it. However, there are reports that he was involved in internal political struggles that led to the leak and damaged his reputation. Regardless, after the leak, a member of the Valencia government confirmed that they had indeed been engaged in high-level negotiations with an automaker.

Media estimates suggest that the value of this Tesla deal could be as high as 4.5 billion euros (approximately 35.61 billion yuan), and it will provide an opportunity for Valencia to collaborate with the world’s most well-known electric vehicle manufacturer. Although Tesla ultimately abandoned plans to build a factory in Valencia, it is still in the process of selecting a location for its new Gigafactory. Following Spain, France has become another popular candidate, and recently Tesla CEO Musk specifically visited French President Macron.

However, it is not just France that wants Musk to invest in building a factory. Italian Prime Minister, Indian Prime Minister, and the South Korean President have also mentioned similar invitations to Musk. Musk has previously stated that the location for Tesla’s next Gigafactory will be announced later this year.

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