Tesla Inc. is in discussions with authorities in Germany and the Netherlands to build its first major European factory, The Wall Street Journal reported July 30, citing officials involved in the discussions.
The electric-car maker reportedly held talks with two German states interested in hosting its Gigafactory in Europe to manufacture electric cars and their batteries at the same location.
A Dutch government official told the news outlet that Tesla has also discussed an option to build the plant in the Netherlands.
The discussions are in preliminary stages and might not result in an agreement. The company has a facility in the Netherlands where it works on cars built in California to prepare them for local markets.
In June, CEO Elon Musk said Tesla would likely announce a factory location in Europe by year's end. Later, Musk said in a tweet that Germany is a leading choice for the location of the factory.
Tesla declined to provide a comment to S&P Global Market Intelligence.
The company on July 10 signed an agreement with the Shanghai government to build its first factory outside the U.S. in Shanghai.