Euro technology Here is everything we know so far about Elon Musk’s new Tesla factory in Berlin

Euro technology

  • Elon Musk announced on Tuesday that Tesla’s first European factory will be built in Grünheide, close to Berlin, Germany.
  • Even though the “Gigafactory” is being built in the eastern outskirts of Berlin, the news was still received positively in the capital city.
  • Berlin’s Senator for Economic Affairs, Ramona Pop, said the factory will produce thousands of jobs in the area.
  • The first model to come off the assembly line in Berlin will be Model Y. This will be followed by the SUV version of the Model 3, which is not on the market yet.
  • Visit Business Insider’s homepage for more stories.

Tesla CEO Elon Musk announced on Tuesday that the company would open its first European factory in Germany’s capital, Berlin. This would be the company’s fourth factory, following facilities in Nevada, California, New York, and China.

—Elon Musk (@elonmusk) November 12, 2019

But many questions still remain unanswered: How many jobs will be created? What kind of cars will be built there? Why Berlin? WELT spoke to Berlin’s Senator for Economic Affairs, Ramona Pop, to find out more.

Euro technology Where exactly will the Tesla factory be built?

The so-called Gigafactory will be built on an industrial site in Grünheide, Brandenburg, which is only a few miles east of the state border between Brandenburg and Germany’s capital, Berlin.

Almost 20 years ago, this exact site was already being discussed as a possible location for a BMW plant, but the German carmaker opted instead to move to Leipzig, where it has since been building its electric car, the i3.

See also  Euro technology Here are the 62 companies that have hired nearly all of Wharton's class of 2019

euro technology Tesla factory

The factory will still attract workers from Berlin, despite being in a different state.
Google Maps

Euro technology What will be produced in the Gigafactory?

On Tuesday evening, Musk announced on Twitter that the new factory will not only produce cars but also batteries and powertrains for electric vehicles. The first model to come off the assembly line in Berlin will be Model Y. This will be followed by the SUV version of the Model 3, which is not on the market yet.

—Elon Musk (@elonmusk) November 12, 2019

Euro technology How many jobs will it produce?

The Senate in Berlin announced that it expects thousands of new jobs from the planned Tesla factory in Brandenburg. “There are currently about 6,000 to 7,000 jobs under discussion for the factory in Brandenburg,” Senator Pop confirmed on Wednesday. Tesla is not only a car manufacturer but also works on software, innovative technology, and research.

Euro technology Why Berlin?

After Musk announced a year ago that he was eyeing Germany as a next location for a factory, many cities made efforts to attract the American carmaking company. Considering Brandenburg is one of Germany’s smaller states, it is not clear yet how it managed to grab the CEO’s attention. 

Details of the discussion that convinced Tesla could be announced this evening by the state government. “We have tried to convince [Musk] with the advantages to the location that we have. But I think we also used our Brandenburger charm,” German politician Dietmar Woidke said.

Musk also told Auto Express that he would have considered building the factory in the UK, were it not for Brexit. He said the political uncertainty made it “too risky” to consider constructing a factory there.

Euro technology How did locals react to the news?

Even though the Gigafactory is being built on the eastern outskirts of the city, the news was still received positively in the capital.

The entire region will profit from the decision, Pop said.

“Berlin has the talent and the growing digital economy has been attracting people for years. That was also a reason Tesla chose this region,” she told WELT. “Apparently, Elon Musk was also attracted to the fact that Berlin and Brandenburg have already made commitments using more e-mobility in the future. For example, we are already funding programs that are looking into electricity storage.”

Pop also said that Berlin has been playing “in the Champions League” and can now keep up with booming cities, such as Shanghai. Even the memories of Berlin’s earlier years as a strong industrial city are awakening: “With a Tesla settlement, Berlin now appears on the map of the relevant car production locations — and continues its successful industrial history.”

Euro technology Will there be any additional sites?

Pop also told WELT that the local government is currently talking about an additional location in the city. “There is an idea for another Tesla development and design center in Berlin itself, but there is still no concrete commitment and no site.”

Read More

Leave a Reply