BUSINESS Way clear for Tesla to buy Berlin factory site

BUSINESS

Way clear for Tesla to buy Berlin factory site

AFP

22:37, January 09, 2020

German regional lawmakers gave the green light Thursday for electric carmaker Tesla to buy land just outside Berlin for its first European factory.

Tesla.jpg

This file photo taken on November 08, 2019 shows a general view of the new Tesla factory built in Shanghai.

"The Gigafactory investment project has taken a big step forward" with the positive vote from the Brandenburg parliament's finance committee, regional finance minister Katrin Lange said.

The contract for the 300-hectare plot in Grueneheide, east of Berlin, calls for a purchase price of 40.9 million euros ($45.5 million), although that figure could yet be revised and Tesla's board has yet to give its final OK.

Tesla chief Elon Musk aims to begin churning out the firm's Model Y SUV and Model 3 sedan as soon as 2021 in the German capital region, ultimately producing 500,000 cars per year.

The idiosyncratic billionaire will hope his project does not run into the delays that have kept the new Berlin-Brandenburg airport nearby shuttered for close to a decade after its originally scheduled opening date.

Brandenburg, a state surrounding Berlin, has high hopes that Tesla's touchdown could bring thousands of high quality jobs.

Like other states in Germany's former communist east, the region's economy still lags behind the more prosperous west.

Berlin daily Der Tagesspiegel reported this week that bomb disposal teams are already combing the woods on Tesla's future plot for leftover World War II munitions.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue