'Berlin rocks' says Elon Musk as chooses European factory

For its part, Germany hailed Tesla's decision to build its first European factory in the country, days after the government said it would boost subsidies for buyers of electrics cars. And the Model 3 commands a higher average price ($50,528) than the 3 Series ($46,477), according to Bloomberg's estimate and data cited from Edmunds.

Other federal states - including Saarland and Lower Saxony - were also initially in discussion as possible sites for the new Tesla factory. Musk previously said that he would like the European facility to be operational by 2021.

Tesla unveiled its first vehicles built in China on November 11.

Recent research showed that only one in four people in the United Kingdom would consider buying an electric auto in the next five years, partly because the government recently cut subsidies for buying greener cars and reduced discounts on all-electric cars from £4,500 to £3,500.

The news comes three years after Musk's firm acquired specialist automative plant machine manufacturer Grohmann Engineering - now Tesla Grohmann Engineering - based in the town of Prüm, in the Eifel mountains in west Germany, a full 677km, seven-hour-plus drive from Germany's capital in the northeast. He said: "Cell production is highly automated".

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The news has been welcomed, especially in the eastern German state of Brandenburg which surrounds Berlin. "We lobbied for this for a long time in intensive talks and with good arguments".

Berlin's Economics Senator Ramona Pop of the Greens said: "Those who have visions come to Berlin".

Economics minister Peter Altmaier called it a "milestone in the development of electric mobility and battery expertise", adding that Tesla's decision was "further proof of the attractiveness of Germany as an automobile location". "We offered various locations and this one suited Tesla", Woidke said.

Musk expected the Shanghai factory to hit "volume production" in a few months, and that it could be possible to significantly ramp up Tesla production. Tesla surprised investors by posting a profit of $143m (€128m) in the third quarter despite a fall in revenue.

More respondents traded in BMW vehicles, as a proportion of the company's U.S. market share, for their Model 3 than vehicles from any other brand. He noted that a battery plant was also being built on the Chinese site.

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