Tesla rallies again as Spain joins the Gigafactory target list
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A report from a Spanish publication on Thursday indicated Tesla (NASDAQ:TSLA) is in talks with the local government of Valencia about building a $4.8B electric vehicle factory in the region. For its part, the Valencia government has confirmed that it is negotiating with an unnamed automaker for a potential large investment in the region. Tesla has not commented on the development.
Tesla (TSLA) already has plans for a new gigafactory in Monterry, Mexico that is expected to be twice the size of the factory in Austin, Texas. Production is anticipated to begin in 2024.
Earlier this year reports indicated Tesla (TSLA) was close to finalizing a deal to locate its next Gigafactory in Indonesia, sources tell Bloomberg. The Southeast Asia site is seen as attractive due to the proximity to sources of the minerals used in electric batteries. Crucially, Indonesia is home to almost 25% of the world's nickel reserves. The initial word was that an Indonesia Gigafactory would have the capacity to produce one million vehicles a year and that several facilities could be set up in the nation to support production and the supply chain.
India, South Korea, and Canada are other regions where Tesla (TSLA) is talking with authorities about potential local production.
Tesla (TSLA) added another 3.79% in late afternoon trading on Thursday as the hot streak continued for the electric vehicle stock.
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