Tesla was reportedly “very angry” when its plans for a potential factory in Valencia, Spain, leaked and it has abandoned the project.

Earlier this month, we shared media reports coming out of Spain that claimed Tesla was planning a major factory in Valencia.

Sources around Ximo Puig, the head of the Valencia government, are reporting that Tesla was “very angry” that the negotiations leaked (translated from Spanish):

This has been recently explained by Ximo Puig, according to the sources consulted by this newspaper. “Ximo Puig said that the Tesla issue came to light through an internal leak that made Tesla very angry ,” explain those who have spoken with him. The “internal leak”, which Ximo Puig has only clarified that it was not him, has generated “a serious problem” with the firm of Elon Musk who, since he learned that the confidential negotiations with the Generalitat had been disclosed, considered the negotiations broken.

According to the report, the negotiations with Tesla are now over.

Tesla CEO Elon Musk recently said that the automaker aims to announce a new factory location toward the end of the year.

Over the last year, Tesla has been looking at many locations for new factories, including in Canada, France, and India.

Electrek’s Take

I am sure that Tesla wasn’t happy about the leak, but I am not sure that’s what was the dealbreaker.

While Tesla does love secrecy, if it would have a great deal on the right location with good incentives, I feel like a leak wouldn’t stop them.

I feel like there’s more to it.