"We have no current plans to build a battery factory in Germany," a Tesla spokeswoman wrote in an e-mail to Autoblog. "We're not in active discussions."
By building a battery plant overseas, Tesla would not only be able to lower the costs involved with selling is cars in Europe, but it would also would compete against former Tesla shareholder and Mercedes-Benz parent Daimler, which also makes batteries. Tesla chief Elon Musk also recently discussed the possibility of opening up Tesla's Supercharger infrastructure to German automakers with Gabriel.
Meanwhile, Tesla may be facing stiffer competition in the form of high-end electric vehicles in Europe. Notably, in September, Porsche took the wraps off of its Mission E concept vehicle at the Frankfurt Motor Show. That proposed model not only delivers 590 horsepower but is rated to go as far as 311 miles on a single charge, using European driving cycle standards.
Last month, reports surfaced that Tesla intended to collaborate with a China-based company and build a factory there for production of Model 3 sales in that country. Musk announced those plans at China's Tsinghua University, but didn't provide details, according to reports in both Teslarati and Reuters.