France is making a concerted effort to convince Tesla Inc TSLA CEO Elon Musk to establish the company’s next Gigafactory within its borders. This comes amidst France’s push to boost its position as a hub for the electric car industry.
What Happened: France’s digital minister, Jean-Noel Barrot, expressed the country’s desire for a Tesla factory during the Viva Tech conference in Paris, CNBC reports.
The minister stated that France has been investing in the electric battery sector and believes it to be the best possible place in Europe for Tesla’s next factory. This courtship comes despite the minister’s threat to ban Twitter, another Musk-owned company, if it does not comply with upcoming European Union regulation
Why It Matters: This development is significant given Tesla’s ongoing global expansion efforts. Musk has previously met with French President Emmanuel Macron, sparking speculation about potential investments in France. The Tesla CEO has also stated that the company will make significant investments in the country at some point.
France’s push for a Tesla factory aligns with its goal of becoming a major player in the electric vehicle industry. The country has set a target of producing one million electric vehicles by 2027 and has opened its first electric car battery factory this year. A Tesla factory in France could significantly contribute to achieving this target.
However, Tesla’s expansion plans are not limited to France. The company has been exploring opportunities in various markets, including India and Indonesia. It is also focusing on Mexico for its sixth Gigafactory and has already made significant strides in the European market with its Gigafactory Berlin. The company’s decision will likely be influenced by a range of factors, including market potential, incentives, and geopolitical considerations.
Furthermore, Tesla’s presence in France extends beyond electric vehicles. The company’s Starlink service has reportedly reduced its pricing by 50% in the country, albeit with new soft data caps on bandwidth usage. This move could potentially increase the adoption of Starlink’s high-speed satellite internet connection in France.
As Tesla continues to expand its global footprint, the possibility of a Gigafactory in France adds another exciting dimension to the company’s growth narrative.
Price Action: Tesla shares traded 1.3% higher at $262.19 in the premarket session on Wednesday, according to data from Benzinga Pro.
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