Tesla is reportedly in talks with Italy for a factory

Tesla is reportedly in talks with Italy to build a factory in the country, according to the Minister for Business and Made in Italy.

Adolfo Urso, Italy’s Minister for Business and Made in Italy, announced today that the government has been in talks with Tesla for a potential factory in the country.

He mentioned both Tesla and BYD (translated from Italian via Ansa):

We have had talks with producers from several countries, not just eastern ones, but western ones too. […] A German city rejected rejected a plan for the large-scale expansion of Tesla’s European assembly plant. This will certainty lead to a decision by the group”.

It’s true that the local residents of Grünheide voted against Tesla’s planned expansion of GIgafactory Berlin, but the vote isn’t binding. Tesla could still continue with its expansion of the already massive factory in Germany.

The minister added that the government has been in talks with Tesla “for months” and it had a “very positive” response from Tesla, but it needs to be prudent.

Italy has been looking to diversify its auto industry, which is currently dominated by Stellantis – a laggard in electrification.

The country is especially looking at Chinese automakers looking to build vehicles in Europe.

Electrek’s Take

I would take this with a grain of salt. Governments are often courting Tesla for factories, and most often, it doesn’t amount to much.

Tesla has already delayed its most recently announced new factory, Gigafactory Mexico.

It is believed that Tesla plans to announce a new factory location by the end of the year, and a second one in Europe could make sense, but at this point, I think it’s far from a done deal.

I would simply add Italy to the list of possible countries.