Tesla plans to invest 4 billion euros ($4.4 billion) in its newly announced Berlin plant to produce up to 150,000 cars a year, German newspaper Bild reported. The first production line at Tesla’s Berlin plant will produce the SUV Model Y, starting as soon as 2021, the report said. Tesla will receive a subsidy of about 300 million euros, which would require EU approval. The Tesla plant in Berlin will initially employ 3,000 people and eventually grow to 7,000.
smaller than the Shanghai factory.
Last week, Tesla officially obtained a production license from the Ministry of Industry and Information Technology, meaning it will be able to mass-produce the Model 3.
In January, Tesla’s Shanghai plant officially opened, with an annual capacity of 500,000 electric vehicles. Tesla is reported to have invested $5 billion in construction of its Shanghai plant. Under the land lease agreement between Tesla and the Shanghai government, Tesla must invest 14.08 billion yuan ($2 billion) in capital spending on its Shanghai plant over the next five years.
Domestic Model 3
Tesla’s global vice president, Tao Lin, said the Shanghai super plant already has production capacity and the first phase is expected to produce 3,000 vehicles a week. Tesla’s Shanghai plant plans to produce 174,000 Model 3s by the end of the year, according to media reports.
Last month, Tesla announced that the Model 3 Standard Life Plus (Made in China) model, which comes standard with basic driver-assisted features, is open for booking selling for 355,800 yuan. Netizens tweeted that the status of their order for the domestic Tesla Model 3 had been updated to the “ready for vehicle delivery” status.
Volkswagen electric vehicles in Germany
Tesla’s berlin plant is a little less invested than its German rival Volkswagen. Volkswagen announced on Friday that it would invest 60 billion euros over the next five years in electric cars, autonomous driving and other new technologies, up from the previously announced 44 billion euros.
VW plans to surpass Tesla by increasing its electric car production to about 1 million by the end of 2020. China is crucial to Volkswagen’s plan. VW is preparing to use two Chinese factories to produce electric cars next year with an annual capacity of 600,000 vehicles, reflecting the fact that vw is producing more industrially than other electric car market leaders.
Tesla is still trying to use its Shanghai plant to meet its target of producing more than 500,000 vehicles a year. VW could rely on a team of workers already established at two factories, Anting and Foshan, to produce zero-emission vehicles.