Published: Wed, November 13, 2019
Markets | By Otis Pena

Tesla announces plans to build Gigafactory 4 in Berlin

Tesla announces plans to build Gigafactory 4 in Berlin

Tesla Chief Executive Elon Musk made the announcement at a prestigious German auto awards ceremony late on Tuesday and said its new plant would make batteries, powertrains and vehicles - starting with its Model Y sports utility vehicle.

"This is NOT AT ALL about Mr. Busch and/or Mr. Musk", Kaeser said, adding that his aim was rather to draw attention to entrepreneurial spirit in Germany and the declining relevance of German companies.

"We will definitely have to put in a higher pace than the airport", Musk added, referring to the notorious delays of the building of Berlin's BER airport.

"The Berlin location serves two unique goals", said Gene Munster, a managing partner at venture capital firm Loup Ventures.

"We are also going to create an engineering and design centre in Berlin because I think Berlin has some of the best art in the world", Musk said.

Tesla has been expected to focus on Model 3 production at its Shanghai automotive factory, where it mulls producing as many as 3,000 vehicles per week next year, Teslarati reported recently. "Giga Berlin", Musk tweeted, bookending the words with heart emojis.

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The Berlin Gigafactory will be an all-encompassing facility that will build batteries, powertrains and vehicles, with the Model Y set to be first model to roll off the assembly line, which will be followed by the Model 3.

Tesla is estimated to have some 30 percent of the European market for battery-powered cars.

The new factory is to be built on an industrial site in Grünheide, Brandenburg, in the Oder-Spree district southeast of Berlin, according to Berlin daily Tagesspiegel. But now a direct competitor to BMW's popular 3-series is likely to emerge there - with German technology.

According to Bloomberg, the plant mostly produces cars in small quantities and Tesla is working with local authorities to obtain manufacturing certification by the end of the year. The carmaker is also gearing up to open its factory in Shanghai.

Siemens Chief Executive Joe Kaeser lamented Germans who don't recognize authentic visionaries and rather admire pot smokers that speak about space travel, just days after his deputy commended Tesla CEO Elon Musk.

Musk had said in June a year ago that Germany was a frontrunner for its first factory in Europe.

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