Tesla picks Germany for European plant

Tesla picks Germany for European plant

Tesla picks Germany for European plant

Tesla's boss Elon Musk has said Brexit uncertainty played a role in the firm's decision to build its first European factory in Germany rather than the UK.

"I think it's a good thing, it will create jobs and electric cars are good for the environment", said Mathias Wirth, who lives in Grünheide, set to host the Tesla plant.

Mr Musk said the facility would be located near the new Berlin airport and later gave more details on what the factory would produce on Twitter.

Mr Musk made the announcement at an awards ceremony in Germany on Tuesday.

"Berlin rocks", Mr Musk said, adding Tesla would build an engineering and design centre in the German capital.

However, industry chiefs have largely backed the German government's insistence on keeping the single market intact.

Tesla faces big investments with the launch of new factories and the development of products, including a pick-up truck and a semi-truck.

The billionaire entrepreneur revealed that the firm's European battery plant would be built on the outskirts of Berlin.

The 48-year-old reportedly hopes to begin European production by 2021.

On stage Tuesday, Musk hailed "outstanding" German engineering as one factor playing into the choice for Berlin.

Berlin's minister in charge of economic affairs, Ramona Pop, said the move could create 6,000 to 7,000 jobs in production alone, with hundreds or even thousands more in areas such as design, software or research. The carmaker is also gearing up to open its factory in Shanghai.

Over the coming years, the biggest electric auto production plants will be in Germany, France, Spain and Italy, industry analysis showed.

"Tesla is coming to Brandenburg with a big investment", Dietmar Woidke, state premier of Brandenburg, which surrounds Berlin, said in a statement.

Musk is now embroiled in a weird legal row with a British cave diver whom he infamously labelled "pedo guy" during the Thai cave rescue in 2018.

David Bailey, who has researched the impacts of Brexit on United Kingdom automotive at Birmingham Business School, told ZDNet that Musk's hints had fuelled hopes for some sort of R&D center or assembly point in the United Kingdom "if and when" Tesla chose to invest in Europe.

In court papers Musk has claimed that the phrase "pedo" is "aimed at mocking a person's appearance and demeanor, not an accusation of pedophilia".

The government has also started to roll out significant policies.

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