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(Reuters) – Tesla Inc is in talks with authorities in Germany and the Netherlands to build its first major European factory, the Wall Street Journal reported on Monday, citing officials involved in the talks.

FILE PHOTO: The Tesla logo is seen at the entrance to Tesla Motors’ new showroom in Manhattan’s Meatpacking District in New York City, U.S., December 14, 2017. REUTERS/Brendan McDermid/File Photo

The electric vehicle maker has had preliminary discussions with two German states vying to host its Gigafactory in Europe to build cars and their batteries under one roof, the report.

Tesla Chief Executive Officer Elon Musk said in June that he favors Germany as the location for its first European Gigafactory.

The company earlier this month announced plans to build its first overseas plant in China.

Tesla was not immediately available for comment.

Reporting by Sonam Rai in Bengaluru; Editing by Maju Samuel

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