Why Elon Musk picked Germany not the United Kingdom for Tesla's Europe gigafactory

Why Elon Musk picked Germany not the United Kingdom for Tesla's Europe gigafactory

Tesla's chief executive, Elon Musk, has said Berlin will be the site of its first European factory as the carmaker's expansion plans power ahead. "That's part of the reason why we are locating our Gigafactory Europe in Germany", Musk said at an awards event.

Musk later tweeted out "Giga Berlin", and said that the location "Will build batteries, powertrains & vehicles, starting with Model Y".

Last month, Tesla released its Q3 2019 financial results, where it revealed that it was in the final stages of site selection for a new Gigafactory to be built in Europe.

Electric Vehicle (EV) maker Tesla has unveiled its first Model 3 made-in-China at Gigafactory 3 in Shanghai and started to give media test drives of the vehicle.

Does Tesla really need an assembly plant in Europe?

Berlin's minister in charge of economic affairs, Ramona Pop, told public broadcaster RBB there had been talks about creating 6,000 to 7,000 jobs in production alone, with hundreds or even thousands more in areas such as design, software or research.

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 auto there, as well as the forthcoming Model Y crossover SUV offering.

He said: "It makes sense to have (a factory) in the United Kingdom once we're producing more than 500,000 units..."

Tesla's fourth so-called gigafactory will set up shop near the German capital, after a long period of uncertainty about where the market-disrupting electric carmaker would choose to build its newest base.

Currently, all of the company's vehicles are built at its factory in California, using batteries produced in Nevada.

Tesla has previously said its European factory would open in 2021, although Musk is known for announcing optimistic dates for building facilities from scratch.

Musk also paid $20million to the US government over alleged securities fraud after claiming he had secured funding to take the company private.

"Tesla is coming to Brandenburg with a big investment", Dietmar Woidke, state premier of Brandenburg, which surrounds Berlin, said in a statement.

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