If Morgan Stanley’s forecast sits correctly, Tesla could soon be in German. Adam Jonas, an analyst at Morgan Stanley, wrote in a note on Thursday that Germany would be a “logical choice” for Elon Musk’s plan to announce a European “gigfactory” by the end of the year.
Mr Jonas said Germany was the “heart” of the global luxury car market, its economy dependent on internal combustion engine technology, and the government was very concerned about climate change, and Germany was more active in pursuing car electrification than other countries.
German Chancellor Angela Merkel’s government and local carmakers agreed this week to increase cash incentives for electric cars to reduce emissions from internal combustion engines. Musk said in June that Germany was Tesla’s “first choice” for its planned European automotive battery plant. The border areas of France, Belgium, the Netherlands and Luxembourg are also under consideration.
Jonas said that while Poland, Hungary or the Czech Republic were seen as possible locations, Germany would be a better choice. The regional foothold will benefit Palo Alto, California-based Tesla. Morgan Stanley expects Germany to become one of the world’s fastest-growing electric vehicles by 2030, with annual sales of 6.5m vehicles, second only to China.