How Tesla Almost Built a Factory in Spain
This page is translated from the original post "Comment Tesla a failli construire une usine en Espagne" in French.
- 10/08/2025 11:17
In 2022, the electric fever was in full swing in Europe and Elon Musk wanted to expand his presence on the old continent.
The European Union had just confirmed the ban on internal combustion engines, and manufacturers, led by Tesla, were preparing for an all-electric future. Already firmly established in Berlin, the California brand was looking for a site for its second European gigafactory. Elon Musk then launched an informal tour across the continent, which sometimes resembled more of a parade than industrial prospecting.
Macron in Élysée, Meloni in Rome, Sánchez in Madrid… everyone wanted a photo with the visionary leader, even going so far as to roll out the red carpet. According to what was officially merely a rumor but supported by enough consistent testimonies to seem credible, the Valencian Community led by Ximo Puig, the regional socialist president, was among the favorites.
Behind the scenes, Puig’s team had brought out the big guns. Promises of ready-to-build land, direct access to renewable energy, competitive wage costs, and a strategic position on the Mediterranean coast. It is said that Musk even flew over the suspected area by helicopter, not far from Volkswagen’s facilities, before a discreet meeting with local representatives.
Tesla and politics, the marriage of electricity and water
Then came the classic political error. During the election campaign, a close associate of Puig told the media that Valencia was in pole position ahead of France and Italy. The goal was clear, to gain some points in the polls. But the real effect was quite the opposite. Musk, who hates seeing his negotiations exposed before they are concluded, felt betrayed. Discussions were immediately halted and Spain disappeared from the shortlist.
Musk then resumed his charm offensive with Macron and Meloni. The two leaders multiplied gestures of openness, promises of tax exemptions, acceleration of administrative procedures and, according to a French advisor, “a willingness to adapt legislation to Tesla.”
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The rest is known. The global electric market slowed down sharply, expansion plans were revised, and the second European gigafactory remains a dead letter. Neither Valencia, nor Rome, nor Paris will see its color.
In summary. Puig loses the elections, Spain loses a 4 billion euro project, and Musk gains what he was really seeking. A tour of Europe that allowed him to test offers and gauge leaders. It’s a pity he didn’t learn on this occasion that politics and industry make a poor mix.
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