French minister offers Tesla site for factory

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Automaker unlikely to consider such an investment until after a successful launch of the Model 3.

A French government minister has offered Tesla a site for a new factory in the country, reports Reuters citing Agence France-Presse (AFP). The Minister of Ecology, Sustainable Development and Energy, Ségolène Royal has suggested that Tesla use a soon to be closed down nuclear power plant in Fessenheim (France) where there are concerns from local politicians and unions about job losses. She said, "The main problem is the site's transformation... We need to give hope to this community. My idea is to bring a Tesla factory." The minister added that she had already mentioned the opportunity to Tesla's founder and chief executive officer (CEO) Elon Musk, stating, "I said to him: 'I have a place for you, Fessenheim'. He didn't say no... Who dares, wins."
 

Significance: The comments coincide with the media interest in Tesla at the moment following the revealing of early prototypes of its Model 3 that has been developed as a more financially accessible electric vehicle (EV) than its current range. Since an event late last Thursday (31 March), the company said it had received 276,000 orders by the end of Saturday (2 April). According to the report, Musk has already speculated about the possibility of putting production in the Alsace (France) region where this site is located. However, the company already has an assembly site in Tilburg (Netherlands), but may feel its needs far greater volumes to meet potential demand for a new model. Nevertheless, Royal's comments are unlikely to hold much weight as yet, and it is unlikely the automaker will make such an investment until after a successful launch of the Model 3.

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