According to anonymous sources, Tesla is reportedly in talks with the government of Valencia, Spain, about a major automotive investment. The details of the investment and its expected form remain undisclosed, but rumors suggest that the American electric vehicle manufacturer might build a car factory in the area. The local newspaper Cinco Dias reported that the investment could be worth €4.5bn ($4.8bn). Recently, Spain has focused on attracting automakers to invest in the manufacture of electric vehicles and batteries, using EU Covid-19 recovery funds to do so. Volkswagen previously announced that it would invest €10bn in building a battery plant near Valencia.
The news comes in the wake of Tesla’s achievement of volume production of the Model Y in Berlin. However, to meet its goal of manufacturing 20 million cars annually, it is estimated that the company would require six more factories besides the one in Valencia. The Spanish government has not made any official statement on the matter, nor has Tesla.
Mobility research firm Geotab recently conducted a study to determine which EV on the market had the best total cost of ownership through 2024. The firm found that the Tesla Model 3 cost the least to own over five years, with a cost of 35 cents per mile, compared to 47 cents for the Kia EV and 50 cents for the Volkswagen ID.4 EV. The Model 3 retails for $39,990, features a 263-mile range, 218 horsepower, and an array of advanced driver assistance features as standard. The study takes into account the lifetime value of each vehicle, with factors such as government discounts, electricity cost, Charger network access, and depreciation.
Meanwhile, Tesla is facing a class-action lawsuit after a group of Black workers at its Fremont, California factory filed over 240 complaints of discrimination. According to testimonies submitted to the Alameda County Superior Court, Tesla’s Black workers often face racist behavior in the workplace, frequent use of racial slurs, references to the factory as a plantation, and more strict discipline for minor infractions. These testimonies are part of a legal action that Marcus Vaughn filed in 2017 after he was terminated from the company. Vaughn claimed that he had a negative attitude, but his firing came after he voiced his concerns about a racist work environment to Elon Musk and HR executives. The lawsuit has grown as lawyers anticipate up to 6,000 workers could join, as there have been similar harassment, discrimination, and racism allegations made against Tesla’s Fremont plant.
Spain wants to be the biggest EV producer in Europe, and the government plans to use EU Covid-19 recovery funds to attract investments in EV and battery production. Valencia is home to a Ford car manufacturing plant, which will produce electric vehicles, and it has already attracted Volkswagen’s battery plant investment. Tesla has yet to announce investment in Spain, but the company’s CEO, Elon Musk, attended the “Choose France” investment summit this year and called for Spain to invest in solar power.
