Tesla has agreed to buy a property on the outskirts of Berlin, the government said today, a step closer to setting up its first plant in Europe. Tesla announced plans in November to build a new plant in Gruenheide, in the eastern German state of Brandenburg, to meet Europe’s rapidly growing demand for electric cars.
Tesla’s board of directors approved a land purchase agreement with brandenburg on Saturday to purchase 300 hectares of land, Brandenburg state government spokesman Florian Engels said in a statement today. It is reported that the Brandenburg State Council Finance Committee approved the deal on January 9.
A Tesla spokesman also confirmed the deal. Engels also revealed that the initial land purchase price stipulated in the agreement was 40.91 million euros ($45.36 million). If there is a objection to the external review, the price can also be modified. He added that the site was located in a designated industrial area and that it was currently being examined for weapons left over from World War II, as there were likely to be unexploded bombs underground.
German politicians, trade unions and industry groups welcomed Tesla’s construction of a plant in Germany, which is expected to create up to 7,000 jobs in Brandenburg. But some 250 locals took to the streets to protest, fearing the plant could endanger water supplies and wildlife in the surrounding forests.
It is reported that the German plant is mainly used in the production of Model 3 and Model Y. The plant will be Tesla’s second electric car plant overseas after the Shanghai plant.