On November 13, the Ministry of Industry and Information Technology issued the 325th charter “Announcement of Manufacturers and Products of Road Transport,” including Tesla (Shanghai) Co., Ltd., which means that Tesla has received a license to manufacture in China. On the same day, Elon Musk announced at the award ceremony in Berlin, Germany, that the European Tesla Gigafactory 4 will be built in Germany, and next to the new airport. The Gigafactory will be used for the production of batteries, power systems and complete vehicles. Production begins with Model Y production. In addition, Tesla will also build a design and engineering center in Berlin. For Tesla, this is two exciting news.
Preparations for serial production at the Shanghai Lingang Gigafactory are fully completed and everything is ready for production. Meanwhile, today, November 18, the Shanghai Gigafactory receives the missing license.
The Ministry of Industry and Information Technology has announced the launch of the new 326th charter: " Announcements of Enterprises and Products of Road Engineering", and a pure Tesla TSL7000BEVAR0 electric sedan has been added to the list. According to the application, the domestic Model 3 has a maximum speed of 140 mph, and the power battery is a three-component lithium-ion battery.
These events are an important step for Tesla.
In fact, after Tesla announced his intention to create a plant in Europe, a number of countries such as Portugal, the Netherlands, Spain, France, Germany and other countries began active operations.
Each of the countries tried to create good conditions so that it was chosen as the location for the European Tesla Gigafactory. Portugal was actively choosing a place for the plant. And considering that the Netherlands is the location of Tesla's European headquarters and an assembly plant already owned by Tesla in the Tilburg region of the Netherlands, the Dutch Minister of Economy was confident that the Netherlands would receive Tesla's patronage. France decided to relocate the former nuclear power plant site for the sake of Tesla Gigafactory.
However, Tesla finally chose Germany. There are several reasons for this:
- significant new energy subsidies;
- Germany is already the friendliest electric car market in Europe, so building factories in Berlin can minimize traffic after mass production;
- Tesla Grohmann Automation GmbH (earlier Grohmann Engineering GmbH), a vehicle automation design and manufacturing company, was acquired by Tesla in 2017, so to some extent Germany is already Tesla's own “site”;
- also, cars labeled "Made in Germany", where the best automobile industry has been for decades, will attract even more attention from potential buyers.
According to TechWeb, Tesla plans to spend 4 billion euros (about $ 4.4 billion) on the construction of a Berlin plant with an annual production of 150,000 cars. Although Tesla plans to spend this amount on the construction of a new plant in Berlin, the company expects to receive about 300 million euros ($ 330 million) in subsidies from the European Union.
Consistent with the idea of creating a factory in Shanghai, setting up a factory in Europe is not only the best choice for Tesla to avoid the risk of uncertainty in international trade, but also the best way to create new sales in areas where market fundamentals are gradually stabilizing.
In the first half of this year, Tesla showed good results in the German market for new energy vehicles, relying on Model 3 to beat sales champions, and got a significant gap with Renault Zoe and BMW i3, which as a result received lower ratings. However, even taking into account the demand for Model 3 and the global balance of capacities, the German Gigafactory will give priority to the production of Model Y.
According to Elon Musk, the Gigafactory will be completed within 12-18 months, and it is expected that it will be commissioned by the end of 2021. In the future, Tesla intends to significantly expand its global production capacity with the goal of building 10-12 Gigafactories around the world.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.