There has been a lot of talk about Tesla soon announcing a new Gigafactory in China as the company confirmed discussions with the Shanghai government to build a plant in their Free-Trade Zone.

But the company has also been talking about a European factory.

Tesla CEO Elon Musk now says that Germany is the “leading choice” for a factory in Europe.

The electric automaker already has a factory in Europe which is located in Tilburg in the Netherlands, but it is only used for ‘final assembly’ of Tesla’s Model S and Model X vehicles.

Musk has been talking about a full battery and vehicle factory in Europe for a while now.

Several European countries have even launched campaigns to try to attract Tesla in their home market.

Tesla was supposed to confirm a location for a factory in 2017, but it never happened.

The CEO recently said that it still makes sense for Tesla to invest in manufacturing capabilities in Europe, China, and in North America – where all the company’s vehicles are currently being built.

Now Musk confirmed that Germany is leading the competition to get Tesla’s next Gigafactory:

Germany is a leading choice for Europe. Perhaps on the German-French border makes sense, near the Benelux countries — Elon Musk (@elonmusk) June 19, 2018

The CEO also confirmed that even if Tesla ends up building a Gigafactory in Germany, the automaker’s headquarters will remain in the Netherlands.

As previously mentioned, Tesla has a final assembly factory in Tilburg, but it also has European headquarters in Amsterdam.

Following the important local impact that Tesla’s Gigafactory 1 had in Nevada, countries are seeing a new Tesla Gigafactory as a great opportunity for job creation and to stimulate their economy.

Tesla is employing thousands of workers at Gigafactory 1 and the factory contributed to a rapid growth in property value in the region.

At Gigafactory 1, Tesla and its partners only produce battery cells, packs, and drivetrain, but Musk has said that the company plans to also produce complete vehicles at future factories.

It could potentially result in an even greater impact on the local economy due to a potential for a greater output of products.

At the moment, Tesla appears to have 3 new factories in the works: this Gigafactory in Europe (likely Germany), a planned Gigafactory to produce the Model Y, and a Gigafactory in China.

Tesla Gigafactory 1: new flyover shows new lot ahead of expansion

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