Electric car maker Tesla plans to invest 4 billion euros ($4.4 billion) in its newly announced Berlin plant, which will produce 150,000 cars a year, German newspaper Bild reported. Elon Musk, Tesla’s founder and chief executive, recently announced that the first production line at the Berlin plant will be used to produce its new cross-border Model Y, which could start production as early as 2021, Bild reported.
The company could receive a subsidy of about 300 million euros, but that is still subject to EU approval.
So far, Musk has relied on the Fremont, California, plant to assemble cars and prop up the electric car company, which has a market capitalisation of more than $63 billion. The Berlin plant will initially employ 3,000 people, and that number could eventually rise to 7,000, Bild reported.
Tesla’s plans to build a factory look a bit dwarfed by the huge plans announced last week by German rival Volkswagen AG. VW said it would invest 60 billion euros over five years in electric cars, autonomous driving and other new technologies, compared with 44 billion euros previously announced.