Tesla is currently searching for a potential factory location in Europe, and their scouting efforts have led them to examine areas in Germany’s North Rhine-Westphalia state.

According to German paper Rheinische Post, first inspections have already taken place. However, it’s been reported that the American EV-maker is also looking at the German state of Lower Saxony with regards to a new factory location, said Economy Minister, Bernd Althusmann last week.

Back in June, Tesla CEO Elon Musk was asked on Twitter whether it would be wise for his company to set up its first European gigafactory in Germany, to which he replied that the latter is “a leading choice for Europe.”

“Perhaps on the German-French border makes sense, near the Benelux countries,” he added.

Also read: Tesla Had To Invest $2.04 Billion In Chinese Gigafactory Or Return The Land To The Government

North Rhine-Westphalia, which happens to be Germany’s most populous state, also shares borders with the Netherlands and Belgium, while Lower Saxony only shares a border with the Netherlands. Meanwhile, Europe is projected to become the world’s “second-largest driver of electric cars in the next decade,” according to Autonews Europe.

Tesla is currently in a race against time as more established brands are beginning to put down serious EV roots. We’re talking about the likes of Mercedes-Benz, Audi and Jaguar, with models such as the EQC, e-tron and the I-PACE respectively.

As for China, Tesla is prepping a new Gigafactory for Model 3 and Model Y production in Shanghai – set to kick off by the end of this year.