The Tesla gigafactory project<\/strong> in Valencia has entered a state of \u00a0indefinite hibernation\u00a0, signaling a worrying trend for industrial investment in Spain. Since the memorandum signed with the Generalitat in June 2023, there have been no tangible advancements, resulting in concerns over the future of electric vehicle production in the region.<\/p>\n <\/p>\n Tesla identified \u00a0ideal land\u00a0 in Cheste, with previous commitments made by the Consell during Ximo Puig’s administration for \u00a0fast-track processing\u00a0 as a strategic territorial project. This has led some to compare it to the success experienced by Volkswagen in Sagunto. However, the stark reality is that several unfulfilled promises have emerged.<\/p>\n <\/p>\n Why is this important?<\/strong> The stagnation of Tesla’s plans leaves the Valencia region with one less industrial promise, exacerbating the urgency for real investments instead of pursuing \u00a0ghost projects\u00a0. The Ford Almussafes plant is currently grappling with severe production declines, echoing the region\u2019s need for \u00a0genuine investments\u00a0 instead of mere memoranda of understanding.<\/p>\n <\/p>\n The ongoing situation highlights the risk of the “announcement effects,” which can create misleading optimism for the local industry:<\/p>\n Valencia must take lessons from Sagunto: industrial projects should be evaluated based on signed contracts and verifiable timelines rather than preliminary talks and flashy pitches.<\/p>\n The context<\/strong> surrounding Tesla is alarming. The company has significantly shifted from being the leader of the continental electric market to facing an \u00a0unprecedented sales crisis\u00a0. In July, Tesla sold merely 1,110 units in Germany\u2014marking a staggering 55% drop\u2014while the overall electric sector grew by an impressive 58%.<\/p>\n <\/p>\n Consequently, Tesla has plummeted from being the top-selling brand in Germany to the \u00a0fourteenth place\u00a0. Alarmingly, none of its models appear among the twenty best-sellers in a market housing the company\u2019s sole European gigafactory\u2014Germany, Europe\u2019s most populous country boasting considerable purchasing power.<\/p>\n <\/p>\n In figures<\/strong>, Tesla’s sales data illustrates a widespread collapse across major European markets:<\/p>\n The contrast<\/strong> between Tesla’s decline and Volkswagen’s growth could not be starker. While Tesla flounders, Volkswagen has doubled its \u00a0electric vehicle sales\u00a0 in 2025, emerging as a dominant player in the continental market. Their ID.3 model leads sales in Germany with 2,907 units, closely followed by the ID.7 with 2,675 units. Notably, half of the electric cars sold in Germany now wear the VW logo.<\/p>\n <\/p>\n Meanwhile, Volkswagen’s gigafactory in Sagunto is progressing as planned, with work ongoing, signed energy agreements in place, and production scheduled for 2026\u2014poised to create thousands of guaranteed jobs. Contrastingly, Tesla\u2019s project has devolved into an evaporated promise.<\/p>\n <\/p>\n Behind the scenes<\/strong>, operations at Tesla\u2019s Berlin factory have reduced shifts from three to two due to inventory surpluses, with unsold Tesla vehicles accumulating at an abandoned airport\u201460 kilometers away from the plant\u2014awaiting buyers who are simply not materializing.<\/p>\n <\/p>\n The planned rollout of a cheaper model priced around 25,000 euros in Valencia is also currently \u00a0on hold\u00a0. Tesla now plans to launch a diluted version of the Model 3\u2014retaining the name but adopting fewer features, such as omitting the panoramic roof and rear screens.<\/p>\n <\/p>\n In summary<\/strong>, Tesla has swiftly transformed from a revolutionary force in the electric vehicle market to just one of many brands vying for consumer attention. The unrealized gigafactory in Valencia epitomizes this downturn: a project that emerged as a beacon of future potential has been sadly relegated to a mere archived memorandum.<\/p>\n <\/p>\n While Volkswagen is actively building its factory in Sagunto, Tesla’s unsold vehicles languish in deserted locations. The lesson for Valencia is stark: in industrial policy, the \u00a0only jobs that matter\u00a0 are those reflected in actual payrolls, not those that merely exist in PowerPoint slides.<\/p>\n <\/p>\n Outstanding image | Alain Rouiller<\/a>, Milan Csizmadia<\/a><\/p>\n In Xataka | A rapid look at the ten best-selling electric car brands in the world gives a dramatic conclusion: China has already won.<\/p>\n\n
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