The Tesla and Ford companies are in the final stages of talks to buy a factory in South Carolina that will make an automated vehicle for the mass market, the Wall Street Journal reported.
The agreement would make Tesla the first automaker to produce its own electric vehicles, and the first to use Ford’s Fusion Energi engine for that purpose.
The plant would be located in Myrtle Beach, South Carolina, close to the Ford plant that makes the F-150 pickup.
The announcement comes after several weeks of rumors about the potential acquisition.
The Wall Street Post said that the talks have been “going on for months” and were first reported by Reuters.
The Journal said the talks were “in the early stages” and “could be at least as soon as this year.”
It said Ford is seeking to sell the facility in South Charleston and that Tesla is looking to build its factory in Florida.
In February, Tesla said it had received a $1.5 billion loan from Deutsche Bank.
It said it plans to build the factory and sell the vehicles to Ford by the end of 2021.
Tesla has been a big supporter of electric vehicle development and has been aggressively expanding the fleet of Model 3 vehicles.
It’s unclear what Tesla plans to do with the facility.
The company did not immediately respond to a request for comment.