Elon Musk says Tesla's first European production plant will be in Berlin

Elon Musk says Tesla's first European production plant will be in Berlin

Tesla's move into Europe comes at a challenging time for the Silicon Valley trailblazer which is investing heavily in new factories and new products, such as a pickup truck, but has yet to prove it can be consistently profitable.

Elon Musk surprised the audience at a vehicle awards ceremony on Tuesday evening by announcing he would build Tesla's first European plant near the German capital Berlin - and by saying Brexit made the United Kingdom "too risky" for such an installation.

Dubbing the plant "Giga Berlin" in reference to the existing Gigafactories in Nevada and New York, Musk detailed on Twitter that it "will build batteries, powertrains and vehicles, starting with Model Y".

A BMW plant had already been considered for this site. "Energy costs are far more important than labour costs".

Musk had said in June previous year that Germany was the frontrunner for its first factory in Europe. The search for factory employees is on now. Fresh off a surprise profit report that sent Tesla shares surging, he threw down the gauntlet in front of rival executives that no longer dismiss his company as a niche automaker.

"Tesla is coming to Brandenburg with a big investment", Dietmar Woidke, state premier of Brandenburg, which surrounds Berlin, said in a statement. I am happy that Elon Musk has chosen Brandenburg as the location.

Berlin's Economics Senator Ramona Pop of the Greens said: "Those who have visions come to Berlin". The Berlin government announced last week that cash incentives will jump by 50 per cent to as much as 6,000 euros (S$8900) per electric vehicle, with the auto industry covering half the cost.

A couple of Model 3 owners took their two cars to the test, one without the new update and the other Model 3 with the new update from Tesla.

The company has been dogged by concerns it may not be able to ramp up production to meet demand and that Musk may have overstated Tesla's goals for sales and technology improvements.

In its Q3 earnings report, the firm announced that its European branch would be up and running in 2021 and that it would build its popular Model 3 saloon vehicle there, as well as the forthcoming Model Y crossover SUV offering.

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