Tesla explores building Gigafactory in Europe

Tesla Inc (TSLA.O) is in talks with authorities in Germany and the Netherlands to build its first major European factory, Reuters reports, citing the Wall Street Journal.

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 Journal reported.

The talks are still in their early stages and may not yield an agreement, according to the report.

Tesla Chief Executive Officer Elon Musk said in June that he favors Germany as the location for its first European Gigafactory.