The European Tesla Gigafactory will be built in Berlin, Germany with a start date of January next year after Tesla and the German government reached a deal on where specifically the factory should be built. A piece of land has now been acquired, and the factory will be setup to build batteries, powertrains, and vehicles. This factory will be the fourth Gigafactory internationally, and the first in Europe.
The Model Y will be the first vehicle to come out of the factory, with the Model 3 being the second. The former will have an expected production start date of 2021, but the production start date for the Model 3 is still unknown.
1. construction start January 2020
2. vehicle production in 2021, max 2 years
3. Model Y first, Model 3 to follow
4. investment cost Shanghai +alpha pic.twitter.com/ABdBY15hLJ
— JPR007 (@jpr007) December 10, 2019
With Gigafactory 3 in Shanghai, China and costing $2 billion to build, the Shanghai Planning and Land Resources Administration notes that it may cost slightly more to build the fourth. Tesla is planning on starting the build before getting approval from Brandenburg’s Finance Committee, according to Bild. It consists of 300 hectares of land which includes logistics space, and will begin if the Silicone Valley company believes a confirmation is likely. “Tesla is likely to start at his own risk even before the approval, if a positive decision can be expected,” Brandenburg Minister of Agriculture, Environment and Climate Protection Axel Vogel said.
Economy and Energy Minister Joerg Steinbach has added that the planning for the factory is on schedule and that “the building area is expected to be cleared by mid-March.” It seems to be that Germany is more than happy to accept Tesla’s manufacturing into the country with Economy Minister Peter Altmaier saying the following:
“We see it as recognition of Germany as a location for making cars. We think we now have the chance, in the coming years, to become an important international centre in this future-oriented sector,” he said.
Tesla CEO Elon Musk agrees that Germany is the perfect place to launch a European branch of Tesla manufacturing, praising German build quality. “Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany”. Having a factory in Europe will also make it cheaper to transport cars to European countries, and would save on both logistics and export costs.
With the Tesla Model Y looking to be an extremely popular car in not just the crossover segment, but the market in general, we can’t wait to see what comes from the German Gigafactory. We’ll keep you posted as we receive more news.