Nissan is still in talks with the government about whether it will buy Tesla Motors, a key question in the company’s long-awaited acquisition of SolarCity, according to people familiar with the matter.
The talks are at a preliminary stage, and the company isn’t in a position to announce any decisions before the summer, the people said.
Tesla, based in Palo Alto, Calif., has struggled to build an electric vehicle business and has struggled with a lack of a profitable market share.
But the acquisition would be one of the largest by a global carmaker to date.
Tesla is valued at about $6.7 billion, according the latest SEC filing.
In the past, Nissan and SolarCity have had informal talks about a possible merger.
But Nissan has resisted taking a position on the proposed deal, one of these people said, speaking on condition of anonymity because the talks aren’t public.
The company has been trying to raise funds through private equity firms.
The new carmaker has raised about $300 million in financing, and it has also been working with private equity partners to build a new electric vehicle plant in Nevada.
Last year, the company announced plans to build 500 electric vehicles in the United States.
SolarCity plans to produce around 10,000 electric vehicles annually by 2025, and Nissan is planning to produce 1,000 by 2020, according in a statement.
Nissan has been looking to raise additional financing to help offset the massive cost of developing a battery plant, which is estimated to cost $8.4 billion to build.
Tesla and SolarMax are seeking about $1 billion in financing each, sources told Bloomberg News.