Tesla to Build Fourth Gigafactory in Germany

In an official statement, Musk said, “Everyone knows that German engineering is outstanding for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany.” Beyond the factory, Tesla will also build an engineering and design center in Germany.

The Big Reveal

This news brings an end to months of suspense where Musk had teased his followers about the location of the company’s fourth Gigafactory. He had maintained that the location would be in Europe, but he had always kept mum on the location. The choice of Germany is a logical choice due to its grip on the auto industry. He’s always spoken fondly of his desire to create a global footprint for Tesla. With two factories in America, one under construction in Asia and another in Europe, his dreams are gradually becoming a reality. The Berlin Gigafactory would be the company’s fourth in a line of impressive factories spread across the world. This includes the first Gigafactory battery plant in Nevada, the photovoltaic cell factory in Buffalo New York, and the Gigafactory 3 in Shanghai, which is still under construction. As per a recent earnings report, the German Gigafactory should be operational by 2021 and it would be similar to the Shanghai facility churning out its popular Model 3 sedans and the forthcoming crossover SUV, the Model Y. Tesla’s sales in the U.S. declined in its last earnings report, but demand is on the rise in Europe despite a slowdown in demand for new cars in Europe. Building a Gigafactory in the center of the EU could help Tesla avoid exporting complexities surrounding exporting cars from America to Europe.

Made in China Teslas Launching Soon

While the euphoria surrounding the Berlin Gigafactory could be overwhelming, the real news is the Shanghai factory, which is weeks away from producing Made-in-China Teslas. The new factory hit the ground running in January and the company’s CEO predicts it should produce at least 1,000 cars a week.

.@Tesla and @ElonMusk built its Shanghai Gigafactory in 168 working days! pic.twitter.com/4BraLKmHvo

— Digital Trends (@DigitalTrends) November 12, 2019

This target is quite ambitious, but the ramp-up would be closely monitored by investors who hope to see whether Tesla has enough in its locker to take on Chinese competitors and fend off European challengers in the likes of BMW and Daimler. The Shanghai factory is critical to Tesla’s future. It’s expected to provide access to a major global car market and access to potential new customers who are die-hard EV fans. What do you think about Tesla’s expansion? Let us know your thoughts in the comments below.

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