For some time there had been rumors that Tesla wanted to establish a production facility in Germany, primarily for batteries. So far, the states of Lower Saxony (where Volkswagen and Continental are located and the corresponding suppliers are quite densely populated) and Saarland (where Ford operates a production plant) have been discussed. Now Musk let the cat out of the bag: The "Gigafactory 4" will be built in the eastern state of Brandenburg, not far from Berlin. Production is scheduled to start in 2021.
According to media reports, Tesla plans to manufacture batteries and electric powertrains in the new factory, but also assemble complete vehicles. Initially, the Y model will be produced there. Tesla is also planning to establish a design and engineering center in Berlin.
The US carmaker is currently building another factory in China, which is about to start operations.
According to media reports, one of the reasons why Tesla opted for high-wage Germany might be the quality defects that plague Tesla's vehicles. The electric car pioneer, with its branch in Germany, is seeking to tap into the production know-how of the automobile country Germany, it was said.