Tesla’s Next European Gigafactory Could Be in France

• Tesla CEO Elon Musk has been spending time in Europe this month as the electric automaker is searching for a place to build another Gigafactory in the EU.

• This week, Musk met with French president Emmanuel Macron and, separately, with Italian prime minister Giorgia Meloni.

• "Let's work together," Macron suggested on Twitter, which Musk of course owns.

Tesla CEO Elon Musk and French president Emmanuel Macron met this week for the second time in a month, as rumors grew that the California-based electric vehicle company will build another factory somewhere in Europe. Macron is encouraging Tesla to build it in his country, and he posted a simple message to Twitter alongside a picture of himself and Musk. "Let's work together," the tweet said.

Macron is balancing a desire to bring a Tesla Gigafactory to France while French regulators are considering banning Twitter until it complies with upcoming European Union Digital Services Act regulations. Musk owns both Tesla and Twitter.

"It will be great to have a Tesla factory in France, there has been a lot of effort and energy to make sure this is possible, and this can happen," France's digital minister, Jean-Noël Barrot, told CNBC. "We have also invested in an... entire sector of electric batteries, so we will try to convince him that France is the best possible place in Europe to establish the next Tesla factory."

Musk made a public appearance at the Viva Tech summit in France Friday.

Tesla currently operates one Gigafactory in Europe. Despite France's efforts to lure that first plant, Tesla built it in Germany, the Gigafactory Berlin-Brandenburg. Musk also met with Italian prime minister Giorgia Meloni this week, and Spain is also mentioned in news reports as a potential new Tesla Gigafactory location.

China Is Also an Option, Apparently

"Today, France is more attractive than ever," French industry minister Roland Lescure said during a radio interview this week. "But the competition with other countries is extremely fierce, so we're bringing out all of our strengths." Lescure said France's competitive advantages include cheap, green electricity and ready land before adding that Spain is holding similar cards.

Tesla isn't the only EV company France would like to see set up shop in-country. France has been talking to Chinese automaker BYD, which announced earlier this month that it would start selling five EVs in France by the end of 2023. According to Automotive News Europe, BYD is considering France, Spain, or Germany for its first European factory. BYD hopes to start producing EVs in Europe in 2025.

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