Tesla Chooses Berlin For Its European Gigafactory

Siemens CEO deplores admiration for 'pot smoker' after deputy praised Elon Musk

Musk made the comments when receiving a Golden Steering Wheel Award at a ceremony in Germany, according to media reports.

Having a production base in the European Union will make it easier for Musk to serve the huge EU market, and avoid any future tariff issues between the U.S. and Europe.

The billionaire entrepreneur revealed that the firm's European battery plant would be built on the outskirts of Berlin. "We hope this sets an example", Birgit Dietze IG Metall's regional head said on Wednesday. There, he reportedly said Tesla chose the "Berlin area" for what he called Gigafactory 4; the Tesla boss also said there are plans for an engineering and design center. "Welcome to the metropolitan region, Tesla!"

The Shanghai Gigafactory is Tesla's first assembly plant outside of the United States and the first wholly-owned foreign auto factory in China.

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Tesla's modest presence in Berlin now includes a store and service centre near the Schoenefeld airport, and showrooms near Potsdamer Platz and on the West Berlin shopping boulevard Kurfuerstendamm. Daimler AG, the maker of Mercedes-Benz cars, is running into labor-union resistance over where future electric cars will be produced ahead of a critical meeting with investors Thursday in London. Chancellor Angela Merkel said earlier in November that Germany should have 1 million charging points by 2030. European customers also expect a network of dealers and fix shops to reliably handle maintenance and fix work, which Tesla has struggled with lately.

"I don't think Germany is that far behind", Musk said when asked about why German automakers were behind in electric vehicles. "It's a milestone in the development of electric mobility and battery know-how".

Tesla's Model 3 made-in-China test drives come on the same day Volkswagen Group and SAIC Motors announced that trial production has started at their EV factory in Shanghai. "The sustainability of the demand will be more the question", he said.

Assembled in the brand-new $2 million Shanghai Gigafactory, the Tesla Model 3 sedans sport sheen blue paint jobs along with Tesla's brand name in Chinese characters. The changes will take effect this month and run through 2025.

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