It turns out that loose lips sink business relationships, as, just a few weeks after it was reported that Valencia was close to signing a deal with Tesla to become the home of the company’s latest gigafactory, the deal is dead.
Tesla is currently on the lookout for a location for its next factory and, earlier this month, it was reported that Valencia was close to being selected as the spot. Spain has become an attractive location for automakers, with VW planning a battery plant in the nation.
But negotiations between Valencia and Tesla have completely fallen apart, reports Spain’s Digital Economy. According to its sources, the cause of the fallout was a leak that alerted media to the possibility of the deal, and made Tesla “very angry.”
Read: Tesla Makes New Proposal To Establish A Factory In India
Although the leak appears to have come from within the Valencian government, the state’s president, Ximo Puig, denies that he was behind it, despite having been involved in an internal political struggle that led to the leak and damaged his reputation. Regardless, after the leak, a member of the Valencian government confirmed that it was in advanced talks with an automaker.
The deal could have been worth up to €4.5 billion ($4.9 billion USD at current exchange rates), and would have led to Valencia jobs associated with one of the world’s biggest EV manufacturers.
Despite ending the deal with Valencia, Tesla is still on the lookout for a home for its next plant. Reports suggest that Spain’s neighbor, France, is among the leading contenders following a visit between the company’s CEO, Elon Musk, and the country’s president, Emmanuel Macron.
However, the executive has also met with Italy’s prime minister, Giorgia Meloni, while Canada and India are reportedly being considered, too. Musk recently said that Tesla plans to announce the location of its next plant late this year.
