Tesla picks Berlin for European Gigafactory

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Tesla boss Elon Musk has said the electric vehicle maker plans to build a new factory near Berlin. Musk announced Tuesday that the company will round out its global manufacturing network with a factory in Berlin.

US electric vehicle pioneer Tesla TSLA.O will build its first European factory and design center near Berlin to produce cars "Made in Germany" as it seeks to burnish its reputation for reliability and sporting prowess.

The Tesla factory is expected to be a boon to Germany, creating thousands of jobs.

"It's a big opportunity for people living here", agreed fellow resident Iris Siebman.

Many customers of economy cars like the Honda Accord, Toyota Camry and the Mazda 3 have traded their cars for a Tesla Model 3. Chancellor Angela Merkel said earlier in November that Germany should have 1 million charging points by 2030.

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Christian Hochfeld, head of clean mobility think tank Agora Verkehrswende, called Tesla's decision "a huge gain for the mobility transition and the transformation of the German auto industry".

"This is good news for VW, Daimler and BMW", said Dudenhoeffer, who heads the Center Automotive Research.

"In contrast the German government is committing big support for EV in the coming years", said Bailey.

The moves come as the firm, which has also invested heavily in a Chinese factory, faces intensifying competition in the electric vehicle industry.

The map below shows where the factory is going to be built.

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"Everyone knows that German engineering is outstanding, for sure".

The capital can lend "creativity" and English-speakers, "the engineering and programming hipsters", while Brandenburg offers "a lower than average paid workforce in the former East Germany" and space to expand.

Musk said that the plan is for the factory to be built near Berlin's new airport, which is located just outside the city limits in neighboring Brandenburg state and now slated to open next year after years of delays.

The planned hub is nearly a decade behind schedule, largely down to problems with its fire suppression system. We've asked Tesla for comment on how close it is to that goal.

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