U.S. electric vehicle maker Tesla is in talks with the Italian government to open a production facility in the country, Italian media reported Tuesday.

Tesla has been engaged in talks with the Ministry of Enterprises and Made in Italy for several months, with the plan to produce electric trucks and vans in southern Italy, according to media reports.

Reports revealed that Tesla officials have already begun evaluating potential sites for the production facility.

The contact between Tesla and the Italian government occurred as Rome engaged with multiple automakers in a bid to ramp up its car production.

Earlier this year, Adolfo Urso, minister of enterprises, said Italy needed to raise its national car production to 1.3 million vehicles a year from below 800,000 in 2023 to preserve its national auto industry amid challenges posed by the transition to electric mobility.

Media reports indicated that Italy is also engaging in discussions with three Chinese vehicle manufacturers: BYD, Great Wall Motors, and Chery Automobile.

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