Ahead of Tesla’s expansion plans power, the company’s chief executive, Elon Musk, announced Berlin to be the first site for its European factory. Furthermore, Musk said, the construction of an engineering and a design centre were also underway in Germany’s capital city.
The expansion announcement is attributed to the ever growing competition within the electric vehicle industry. Initial reports suggested Tesla aimed to start production in 2021 in Europe.
“Everyone knows that German engineering is outstanding and that’s part of the reason we are locating our Gigafactory Europe in Germany,” announced Musk as part of an awards ceremony in Germany on Tuesday.
Based on Musk’s statement, the factory will be located near the new Berlin airport. His post on Twitter also gave insights into what the factory would produce; vehicles, powertrains, batteries, starting with Model Y.
Experts allege, the focus on Germany is mainly due to the growing demand for electric cars in Europe. Furthermore, industry analysis also predict that the greatest demand for largest electric car production plants will be in Spain, Italy, France and Germany.
According to reports, 16 large-scale lithium-ion battery cell plants were confirmed and will begin operations by 2023 in Europe.
It is also alleged that Tesla is fostering its production in China. The country has the biggest car market in the world and has faced the loss of sales due to tariffs in the wake of the US-China trade war.
The company’s plans in Europe are also attributed to firm’s $2bn project in Shanghai. Allegedly the facility in Shanghai will produce Model 3 and Model Y cars.