Tesla opens ‘Gigafactory’ near Berlin, its first in Europe

Berlin, March 23 (BNA): Tesla inaugurated its first European factory in the suburbs of Berlin on Tuesday in a bid to compete with German carmakers on its home ground.

The company says the new “Giga Factory” will employ 12,000 people and produce 500,000 vehicles a year once fully up and running. Initial production will focus on the Tesla Model Y compact SUV.

German Chancellor Olaf Schulz attended the opening ceremony in Gruenheide, southeast of the German capital, with Tesla chief Elon Musk, who performed an impromptu dance for fans as the first cars came out of the factory for delivery.

He later posted a comment on Twitter thanking Germany with “Danke Deutschland!” The Associated Press reported that surrounded by German flags.

German Economy Minister Robert Habeck said the factory opening was a “nice symbol” that petrol cars could be replaced with electric vehicles at a time when Germany and other European countries were trying to reduce greenhouse gas emissions.

Tesla began building the massive facility less than three years ago, before it received official permits to do so. Had these permits not been issued, the company would have had to settle the site.

“This is a different corporate risk culture,” Habeck said, after being asked to compare Tesla’s approach to the sluggish pace of German construction projects like the nearby New Berlin Airport, which opened with a nine-year delay.

Environmental activists have warned that the plant may affect the drinking water supply in the area.

Tesla dismissed those warnings. The company denied most media access to the site and the ceremony on Tuesday.

FA