Tesla to build first European factory in Germany

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The company has an engineering firm in Pruem, Germany, that specialises in automated manufacturing systems for battery plants. Three years ago, Tesla bought the German machine manufacturer Grohmann, which specializes in production lines.

Speaking at the Golden Steering Wheel Awards, Musk said last night the new European Gigafactory battery facility would be based in the Berlin 'burbs, close to the site of the as-yet-unopened Willy Brandt Airport at Berlin Brandenburg. "That's part of the reason why we're locating our Gigafactory Europe in Germany". It will also cut costs for Tesla in one its most important markets, especially for the mid-priced Model 3. Musk said Tuesday that the new facility would be "near the new airport", Korosec reports.

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According to "Manager Magazin", Elon Musk had already confirmed at the presentation of the Tesla figures for the third quarter of 2019 that his company wanted to build a factory in Europe.

Musk's appearance at the awards ceremony is another example of Tesla's efforts to give its cars the German stamp of quality. "On the contrary, they also profit", said economist Alexander Schiersch, noting that demand created by Tesla will "strengthen the whole supplier industry here at home".

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In an interview with British publication Auto Express, Musk said uncertainty over Britain's planned exit from the European Union - and thereby the world's biggest trading bloc - had been a factor in not building the new plant there. "When we started out at Tesla everyone thought we were huge fools-and I thought we were fools too, frankly-but I thought it was important to get to a sustainable energy future".

Back in late 2016 Elon Musk said Brexit wasn't really an issue when it came to expanding into the United Kingdom and Europe. Volkswagen kicked off mass production of its new ID.3 electric vehicle at its plant in Zwickau, Germany, a few weeks ago, and is pinning its hopes on this little auto becoming the same kind of success story in the reasonably-priced category that the VW Beetle and Golf were in the past.

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Speculation has been ongoing as to where the Fremont, California-headquartered vehicle, solar and battery energy storage technologies company would put its next gigawatt-scale manufacturing facility, following the first plant, in Nevada, and the apparently stalled solar production site in Buffalo, New York.

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