The EDF-operated Fessenheim reactor, located on the French-German border, is due to close at the end of the year to fulfil a long-standing pledge by French President Francois Hollande.
However the closure has been opposed by local politicians and unions who are concerned about job losses.
Royal’s solution, according the news agency AFP, is to bring Tesla to the site.
AFP reported that Royal said: “The main problem is the site’s transformation. We need to give hope to this community. My idea is to bring a Tesla factory.”
The minister said she had tackled the subject with Musk: “I said to him, ‘I have a place for you – Fessenheim’. He didn’t say no. Who dares, wins.”