Saturday, 07 December, 2019

Tesla Chooses Berlin For Its European Gigafactory

A Tesla factory in the Chinese city of Shanghai on Nov 8 2019 Tesla to build first European factory in Germany
Irene Mckinney | 15 November, 2019, 00:53

Tesla's chief executive, Elon Musk, has said Berlin will be the site of its first European factory as the carmaker's expansion plans power ahead. Musk announced the Berlin decision at a vehicle industry awards ceremony on Wednesday night hosted by the German tabloid Bild.

During an award ceremony in the German capital, Mr Musk that "we've made a decision to put the Tesla Giga factory Europe in the Berlin area".

Musk said during the Q3 briefing earlier this month that the Shanghai factory had created a template that could be followed in Europe - although we note Tesla is still waiting for final licensing and government approval in China.

Generating positive word-of-mouth is particularly important for Tesla, since the electric-car maker doesn't use traditional advertising to attract new customers.

"Brexit made it too risky to put a Gigafactory in the UK", Musk was quoted as saying.

Does Tesla really need an assembly plant in Europe?

The Shanghai Gigafactory, which broke ground in January, will initially build Model 3 sedans which start at about $50,000.

'Berlin rocks' says Elon Musk as chooses European factory
The factory will produce "batteries, powertrains & vehicles", starting with the upcoming Model Y crossover . The CEO also made the announcement on stage at an awards ceremony in Germany , it was widely reported .

He wrote on Twitter that the new plant "will build batteries, powertrains & vehicles, starting with Model Y".

Berlin's minister in charge of economic affairs, Ramona Pop, said the move could create 6,000 to 7,000 jobs in production alone, with hundreds or even thousands more in areas such as design, software or research.

Germany's big three premium carmakers now have another reason to worry, as Tesla CEO Elon Musk has announced massive investment plans in the land of Audi, BMW and Mercedes-Benz.

Mr Musk also cited risks surrounding the UK's exit from the European Union for his decision, according to AutoExpress.

Energy-Storage.news reached out to Tesla to ask how focused the new factory is likely to be on its stationary energy storage products, Powerwall, Powerpack and Megapack and whether any solar equipment will be manufactured in Berlin, but had not yet received a response at the time of publication. Musk said Tuesday that the new facility would be "near the new airport", Korosec reports.

The government has also started to roll out significant policies.

The premier of the state of Brandenburg, which surrounds Berlin, said Tesla was "coming with a big investment".

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