Tesla pulls out of Gigafactory negotiations with Valencia over leak: Report

It appears that Tesla has lost interest in establishing a Gigafactory in Spain, as reports suggest they have withdrawn from talks with the regional government of Valencia following the media's exposure of these ongoing discussions.

At the beginning of this month, we informed you that Tesla was nearing an agreement to construct a mega factory in Valencia. This potential deal had a staggering estimated value of around €4.5 billion (US$4.8 billion/C$6.5 billion). Subsequently, a representative from the regional government of Valencia provided confirmation to a local media source that discussions and dialogues regarding a substantial investment in the automotive industry had indeed occurred. Furthermore, it was disclosed that these conversations were in a highly progressed stage.

It seems that Tesla was very angry about the release of this information, and even though they were in advanced discussions, the talks have come to a halt, and they no longer view Valencia as a possible location for their Gigafactory. The sudden shift was reported by Valencia's Digital Economy newspaper, which mentioned sources who had spoken with the present President of the Valencian Government, Ximo Puig. Puig has denied being the one who shared the negotiation details with the media.

Spain seems to have been ruled out as a potential location for Tesla's next Gigafactory, but other countries are now vying for the opportunity. France has shown interest, as President Emmanuel Macron recently met with CEO Elon Musk. During his trip to Europe, Musk also had a meeting with Italy's Prime Minister Giorgia Meloni. India is also in the running, as Musk has committed to making a substantial investment in the country after meeting with Prime Minister Narendra Modi.

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