Tesla is in talks with authorities in Germany and the Netherlands to build its first major European factory, the Wall Street Journal reported on Monday, citing officials involved in the talks.
The electric vehicle maker has had preliminary discussions with two German states vying to host its Gigafactory in Europe to build cars and their batteries under one roof, the report said.
The talks are still in their early stages and may not yield an agreement, according to the report.
Tesla CEO Elon Musk said in June that he favors Germany as the location for its first European Gigafactory. "Perhaps on the German-French border makes sense, near the Benelux countries," Musk had said on Twitter, responding to a public tweet.
Tesla already has an engineering division in Pruem, Germany, that is about 30 kms from Belgium and about 100 kms from the French border.
The company earlier this month announced plans to build its first overseas plant in China.
Tesla was not immediately available for comment.