According to a new report by Deutsche Bank, electric car maker Tesla’s Giga Factory 4 in Berlin, Germany, will begin construction around January 2020. It comes after reports that Tesla has reached an agreement with local government officials to buy construction land to build the company’s electric vehicle and battery production facilities.
Elon Musk, Tesla’s chief executive, announced last month that Berlin would be home to Tesla’s next car production plant. Deutsche Bank reported that the Tesla plant “is expected to start construction in Berlin around January 2020, starting with the model Y and then the Model 3.” After announcing plans for the Berlin plant at the “Golden Wheel” awards ceremony in Germany, Musk said the plant “will start with the assembly of model Y, including the production of batteries, powertrain systems and vehicles.” “
Tesla expects production of the Model Y at the Berlin plant to begin in 2021, “up to two years after the groundbreaking ceremony.” It is unclear when Tesla will begin production of the Model 3, or how much the company will invest in the upcoming facility. However, there has been speculation that the cost will be “slightly higher” than the $2bn investment at Tesla’s Shanghai-based Super 3.
According to local German media, Tesla’s agreement to buy 300 hectares of land for production and construction of logistics space will take effect with the approval of the Brandenburg Finance Committee. However, the company is said to be planning to start building new plants before it is approved. Axel Vogel, brandenburg’s minister of agriculture, environment and climate protection, said: “Tesla may even start taking its own risks before it is approved. “
Joerg Steinbach, Germany’s economy and energy minister, said the project was on schedule and that “it is expected that the construction site will be cleared by mid-March”. Steinbach and other government officials have been vocal in support of Tesla’s operations in Germany. After announcing the Berlin plant plan, Economy Minister Peter Altmaier and Steinbach attended a news conference in Potsdam, Germany, where they spoke highly of Tesla’s decision.
“We think it’s an endorsement of Germany as a car manufacturing base,” Altmeier said. We believe that in the coming years we have the opportunity to become an important international centre in this future-oriented field. “
Musk and Tesla saw several benefits in moving the company’s new plant to Germany, explaining: “Everyone knows that Germany is doing a great job in engineering, that’s for sure.” That’s part of the reason we’ve located our European plant in Germany. “
Tesla expects the Berlin plant to help boost its increasingly popular car production, particularly the crossover Model Y. The car will compete in the highly competitive crossover, one of the most profitable models in the car market.