February 5, 2023

Tesla releases first vehicles when German Gigafactory goes live

BERLIN, March 22 (Reuters) – Tesla will present to customers on Tuesday the top 30 Model Y cars made at its 5 billion euro ($ 5.5 billion) Gruenheide plant, launching its first European manufacturing hub, the largest investment in the German car industry. In recent history.

CEO Elon Musk arrived in Berlin on Monday and tweeted: “Glad to deliver the first production cars made by Kiga Berlin-Brandenburg tomorrow!”

Selected customers will receive a Model Y performance configuration priced at 63 63,990 over a range of 514 km (320 miles) and new orders will be placed from the plant from April, Tesla said.

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German Chancellor Olaf Scholes will attend an event Musk hopes will take place eight months ago. However, local officials said it was still being completed relatively quickly.

“Some people do not believe Germany can do this,” Regional Finance Minister Jர்க்rg Steinbach told Rbb Radio on Tuesday. “We showed the world.”

Of the 12,000 workers expected at the plant, more than 3,000 have been hired so far, Tesla said Tuesday.

The delay in licensing the plant forced Tesla to serve earlier European orders from its Shanghai plant, raising logistics costs.

“Localizing production within a continent makes a huge difference in capital performance,” Musk tweeted.

At full capacity, the plant will produce 500,000 cars a year – more than the 450,000 battery-electric vehicles that German rival Volkswagen (VOWG_p.DE) Will be sold worldwide in 2021. It will generate 50 gigawatt hours (GWh) of battery power, surpassing all other plants in Germany.

Currently, Volkswagen is still the market leader in the European electric vehicle market, with a market share of 13% to 25% of Tesla. Musk said it would take more time to increase production than the two years it took to build the plant. read more

JP Morgan predicts that Gruenheide will produce about 54,000 cars by 2022, increasing to 280,000 by 2023 and 500,000 by 2025.

Volkswagen, which has already received 95,000 EV orders in Europe this year, plans to build a 2 billion euro EV plant with its Wolfsburg plant and six battery plants across Europe.

But its timeline lags behind that of Tesla, with the EV plant set to open in 2026 and the first battery plant in 2023.

Tesla received final approval from local authorities to begin production on March 4, which met a number of conditions, including issues such as water use and air pollution control. read more

The carmaker was forced to lose its water supply contract when local environmental groups complained to the Ministry of Environment about a license issued to Tesla’s water supplier. read more

($ 1 = 0.9086 euros)

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Victoria Waltersi, Nadine Shimrosik Report; Editing by John Harvey and Edmund Blair

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