Tesla eyes new factory in Spain - source

STORY: Tesla could be getting closer to building another factory.

A Reuters source says the EV pioneer is in talks with the regional government of Valencia, in Spain.

The Cinco Dias newspaper said Thursday (June 8) the firm could invest over $4.8 billion in the new facility.

It cited sources close to the discussions.

A spokesman for Valencia would only say that the regional government was in talks over a “large automobile investment”.

There was no comment from Tesla or Spain’s central government.

The country is already Europe’s number-two car producer.

German giant Volkswagen recently said it planned to invest billions in a battery factory near Valencia.

Spain is using EU health crisis recovery funds to attract carmakers.

It wants them to invest in the manufacture of both cars and batteries.

Tesla’s main existing plant in Europe is in Germany.

France is also wooing the EV giant.

Last month Tesla boss Elon Musk said he was confident the company would make “significant investments” there.