U.S. electric car manufacturer Tesla (TSLA.O) is in talks with the leaders of the regional government of Valencia in Spain to build a car factory, newspaper Cinco Dias reported on Thursday, citing unidentified sources close to the discussions.
The company’s total investment in the factory could surpass 4.5 billion euros ($4.83 billion), the newspaper said.
A spokesman for Valencia’s regional government told Reuters it had held meetings and conversations with an unidentified company about a “large automobile investment”, but declined to give more details, citing the confidentiality of the negotiations.
Tesla did not immediately respond to a request for comment, while Spain’s central government declined to comment.
German car maker Volkswagen has already said it plans to invest as much as 3 billion euros in a battery factory in the town of Sagunto in the Valencia area.