Tesla Abandons Plans to Build Factory in Spain: Report

Tesla abandons plans to build a factory in Valencia, Spain. According to a report, the company did so because the government officials it was negotiating with “leaked” the information about the deal to the media.

Spain will not be home to Tesla

According to the Spanish publication Economia Digital, Tesla has removed Valencia from its list of destinations where it could open a new factory. This came almost three weeks after the rumor about the company’s intention to settle in Spain was initially known. The talks are said to have completely broken down. In the breakdown of negotiations, sources blame the current chairman of the government of Valencia, Ximo Puig. However, the official himself denies that he leaked the information to the media.

Leaked of the information has become a red flag for Tesla

On June 8, it was reported that Tesla is considering Valencia as an option for its second factory in Europe. For this, the company allegedly negotiated with the Generalitat Valenciana. It was reported that the Generalitat had signed a confidentiality agreement with Tesla, so declined to comment.

It was reported that Tesla belonged to one of several multinational corporations with which the Valencian government was in dialogue. The discussion was held to attract the companies to the region. On May 19, Ximo Puig, president of the Generalitat, told the Mediterranean Tribune Europe forum that his chief was in open talks “at the highest level” with ten major companies.

Tesla CEO pays visits to European leaders

While Spain may have missed the chance to boost the economy with a Tesla factory, some other countries could benefit instead. The electric vehicle manufacturer is coveted in many European countries. Recently, Tesla CEO Elon Musk made several trips to Europe, during which he met with French President Emmanuel Macron and Italian Prime Minister Georgia Meloni.

It is known that Macron was going to advertise France as a location for another Tesla factory. The President himself admitted this. Whether the question of building a factory in Italy was discussed with Meloni remains unknown.