MADRID — Tesla is in talks with the leaders of the regional authorities of Valencia in Spain to construct a automotive manufacturing facility, the Spanish newspaper Cinco Dias reported, citing unidentified sources near the discussions.

The corporate’s whole funding within the manufacturing facility may surpass 4.5 billion euros ($4.83 billion), the newspaper mentioned in its report on Thursday.

A spokesman for Valencia’s regional authorities advised Reuters it had held conferences and conversations with an unidentified firm a couple of “giant vehicle funding,” however declined to offer extra particulars, citing the confidentiality of the negotiations.

Tesla didn’t instantly reply to a request for remark.

Volkswagen has already mentioned it plans to speculate as a lot as 3 billion euros in a battery manufacturing facility within the city of Sagunto within the Valencia space.

Spain is Europe’s second-largest automotive producer, and is utilizing European Union COVID pandemic restoration funds to draw automakers to spend money on the manufacture of each batteries and electrical automobiles. The EU plans to part out combustion-engine automobiles.

Tesla has thus far established one manufacturing facility in Europe, a facility close to Berlin that produces the Mannequin Y crossover, which was the best-selling automotive total in Europe within the first quarter — in addition to globally. Tesla’s different top-seller in Europe, the Mannequin 3, is imported from Shanghai.

CEO Elon Musk has mentioned he’s aiming to promote as much as 20 million automobiles a 12 months, with a community of 10 to 12 “gigafactories” that might construct as much as 2 million models a 12 months every.