Currently reading: Tesla to receive at least €1bn in German state aid, report claims
Claim follows EU-approved plan to give aid to car makers to support EV battery production in Europe
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2 mins read
2 February 2021

Tesla looks set to receive at least €1 billion (£880m) of public funding from Germany as part of the firm opening an EV battery manufacturing hub in Berlin. 

First detailed by Business Insider, the deal is said to form part of a recently approved European Union plan dubbed the European Battery Innovation project. The project, which includes more than 40 countries, allows for €2.9bn to be doled out to support cell production and help reduce reliance on Chinese imports. 

German government sources have reportedly confirmed the €1bn subsidy for Tesla, which is given mainly by the federal government but also by the state of Brandenburg, where the battery factory is being built.

Officially, however, the German economy ministry said that isn't yet clear how much money will be given to the American company. 

The reported move has proven controversial in many industry circles, particularly given Tesla’s sky-high stock market valuation and CEO Elon Musk’s new status as the world’s richest man.

However, the EU plan will also result in funding being given to domestic firms, such as BMW, it's claimed.

It's not yet clear how much the Munich firm will receive. Final decisions on subsidies for all firms are expected in the coming weeks. 

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djhf 2 February 2021
Wow, that's a lot of state aid. I imagine the US would be suing via the WTO (a la Airbus) if that wasn't going to a US firm. Presumably the Brexit level playing rules don't prohibit state aid.
405line 2 February 2021

I think most people can read between the lines

The Apprentice 2 February 2021
405line wrote:

I think most people can read between the lines

The fuss they made during the negotiations about us being able to gain advantage through state aid! Laughable hypocrisy.

lambo58 2 February 2021

Methinks another reason Musk wanted his Facory in Germany and not here. He would never have gotten the subsidies

 

Peter Cavellini 2 February 2021
lambo58 wrote:

Methinks another reason Musk wanted his Facory in Germany and not here. He would never have gotten the subsidies

 

would've thought the German purse strings would be a bit tighter at the moment?

lambo58 2 February 2021

Well, unlike us the Germans still make things, hence their stronger economy... Go figure.

The Apprentice 2 February 2021
lambo58 wrote:

Well, unlike us the Germans still make things, hence their stronger economy... Go figure.

Sort of, they are really good at putting German reputation on things. Have got away with it for years. Over 20 years ago I recall being stood in the warehouse of a German household name, and watching the discreetly unbranded £80'ish product on pallets from China being sticker badged and put into nice German retail boxes with multi language manuals. You would be getting billed £299+vat on your purchase order for one of these babies. Reassured you were getting finest German technology.

289 3 February 2021

Yes Apprentice. Its something which rankles with me greatly!  Its deception at the very least.