Currently reading: Tesla to build first European factory in Germany
Plans to set up in UK scratched as Elon Musk announces Berlin-based manufacturing, engineering and battery site

Tesla will build its first European factory in Berlin, Germany, boss Elon Musk has confirmed.

The facility will include an engineering and design centre and will be used to manufacture cars, batteries and powertrains. The first car to be built there will be the upcoming Model Y small SUV, according to Musk.

"Everyone knows that German engineering is outstanding, and that's part of the reason we are locating our Gigafactory Europe in Germany," he said.

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

The announcement dashes hopes that the facility could be constructed in Britain, something Musk had previously suggested was likely.

In 2016, prior to the Brexit vote, he said: “We have a lot of respect for the British automotive engineering talent. Just look at Formula 1: it amazes me how much British talent there is in that. We're likely to establish a Tesla engineering group in Britain at some point in the future.”

Tesla faces increasing competition from established car makers but is now on-track to open new Gigafactories in China and Europe, adding to its established US operations to give it a global manufacturing base.

At present, 16 lithium ion battery cell plants are confirmed or due to begin operations in Europe by 2023, underlining the level of competition that Tesla faces in future.

Musk made his announcement while he was on stage at an awards ceremony with Volkswagen Group boss Herbert Diess. When asked why other car makers were lagging in the race to build electric cars, Musk said: "I don't think Germany is that far behind." Volkswagen will launch the ID 3 next year and has set the goal of selling more than one million electric cars across 20 electric model lines by 2025.

Tesla has yet to record a full-year annual profit, but it has posted positive quarterly results in the past 12 months. In order to boost profitability, it has undergone a significant cost-cutting project in 2019, both improving its production processes and cutting jobs.

Read more:

Analysis: Tesla making progress but still faces challenges

Tesla Model Y revealed

Tesla Model 3 Performance 2019 review

New Tesla Roadster has first European showing at Grand Basel

Tesla Model 3 becomes EV with longest range in Europe

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fhp111 13 November 2019


ThIS HaS NotHinG tO Do WiTH BrEiXT - Our EcoNOMee wiLl bE StroNGr ThAn eVr OnCe We sEGraGatE OuRSelVES.

Dilly 14 November 2019

fhp111 wrote:

fhp111 wrote:

ThIS HaS NotHinG tO Do WiTH BrEiXT - Our EcoNOMee wiLl bE StroNGr ThAn eVr OnCe We sEGraGatE OuRSelVES.


lol exactly! hahaha Brilliant!

fsizer 13 November 2019

Ownership matters

In the end, for as long as we don't actually own the car companies that build cars in the UK, we will always be at the bottom of the list for investment and/or first to be cut when necessary.

Hopefully Brexit can at least lead to looking more deeply at whether the sale of national assets to foreign competitors is actually in our long term interests.

dipole 13 November 2019

Germany has a talent for

Germany has a talent for quality processes so it is entirely up to the manufacturer to decide if they want to produce quality product using those quality processes.