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Tesla to Pay Only 40.91 Million Euros for Gigafactory 4 Land

by Claribelle Deveza January 08, 2020


Tesla may have to pay only 40.91 million euros for the Gigafactory 4 forest. The next-gen auto company may have negotiated a good deal for the GF4 forest with Brandenburg for its next factory. On the other hand, Brandenburg will also reap some benefits from Tesla’s presence in the area. As such, it seems that Gigafactory 4 will be beneficial for both parties. 

Brandenburg officials signed the purchase contract for Gigafactory 4 land in late December, close to Christmas Eve, but finalization of the agreement is still pending. The finance committee still needs to approve the final purchase contract, which is expected to take place on Thursday, January 9. According to Bild, Tesla negotiated a good deal for the 300-hectare forest where Gigafactory 4 will stand. 

The EV carmaker is expected to pay approximately 40.91 million euros for the GF4 forest, based on the purchase contract. Based on calculations, a 40.91-million-euro price for the 300-hectare piece of land would amount to precisely 13.52 euros per square meter. 

It seems that the relatively low price of the GF4 forest is because of the land's undeveloped nature. As such, Tesla was able to get a reasonable price for Gigafactory 4’s site from Brandenburg’s local government. For comparison, properties at Freienbrink—the business park near the GF4 forest—costs about 40 euros per square meter. Compared to the land that Tesla is planning on buying, properties in Feienbrink cost three times more.

Preliminary preparations in the GF4 forest started on Monday, January 6. Multiple crews of ammunition recovery teams arrived on the site, and some started setting up camp. Teams are currently searching for any leftover WWII bombs in the area. So far, 250 bomb funnels have been discovered, as well as 25 unexploded bombs. 

Brandenburg is paying for the ammunition recovery teams and garbage removal in the GF4 forest reported Bild. Based on the purchase contract, Brandenburg will collect 50 percent of the profit if Tesla decides to sell the land to others. 

However, if the EV automaker ever does sell the GF4 site, Brandenburg has the right of first refusal for ten years. Brandeburg has reserved the right to withdraw from the sale if Tesla does not invest in the land. Meanwhile, the EV carmaker has the right to withdraw from the purchase until the end of 2021.

H/T: @gigafactory_4

Featured Image Credit: Gf4Tesla/Twitter

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