A $2 billion deal between Tesla and Ford could put the electric-car maker in the position of building out its own electric vehicle and plug-in hybrid production line.
The deal, which has not yet been announced, is the latest sign of Tesla’s ambition to expand its electric-vehicle offerings to the automotive and transportation sectors.
The partnership would allow Tesla to develop its own manufacturing facility, according to people familiar with the matter.
Ford and Tesla are partners in a carmaker that has struggled with manufacturing capacity issues in the U.S. and has had to shed some manufacturing jobs in recent years.
In an interview last month, CEO Elon Musk said Tesla would invest $1 billion to help Tesla develop its next-generation vehicle, which is expected to have a range of 250 miles.
Tesla has said it plans to invest $5 billion to develop electric vehicles, but did not say when it would begin.
Tesla declined to comment on Wednesday.
A person familiar with Ford’s plans, who spoke on condition of anonymity because the details were confidential, said the automaker is interested in partnering with Tesla, too.
The carmaker would buy into Tesla’s technology, develop its production lines and create manufacturing sites for its vehicles, the person said.
A source familiar with Tesla’s plans said the carmaker has yet to decide whether to pursue a direct acquisition of Ford.
A Ford spokesman declined to answer questions on Wednesday about the new partnership.
Ford, the nation’s largest automaker, has struggled to gain traction in the electric vehicle market.
The automaker has struggled over the years with problems with electrifying some of its vehicles and losing market share to the likes of General Motors and General Electric.
Ford also has struggled in its quest to sell more electrified vehicles.
The company has struggled at times with its high costs and the prospect of losing some of those customers.
Last month, Ford unveiled plans to build an electric SUV that it said would be ready for production in 2019.
Tesla plans to produce vehicles that are capable of being sold in large numbers.
Tesla currently sells its vehicles in California, Nevada and Texas.
In addition to Tesla, the automakers have teamed up on the Tesla Roadster electric SUV and the Tesla Model X crossover.
Both vehicles are expected to debut in the first half of 2018.