‘Tesla stops the German battery factory in favor of the United States’
Despite billions in German government support for the factory, Tesla prefers Texas at this time.
Send an email
Tesla is temporarily canceling construction of a battery factory at its Gigafactory in Grünheide, Germany. At this time, the automaker is choosing to manufacture batteries in a new plant in Texas. The company could then take advantage of a tax break for EVs that President Biden has introduced, Automotive News Europe reports. Germany is outraged by the decision.
The measures, which can amount to subsidies of up to USD 7,500 per vehicle, apply only to vehicles that are entirely built in the United States itself. The construction of the German battery factory is already advanced and the factory can operate in the future. Tesla may still want to source parts and technical experts from Germany, but it will set up its own battery factory in Austin.
In Germany there has been anger over the reports. Jörg Steinbach, Minister of Economy of the state of Brandenburg, where the Tesla factory is located, says: “This is an attack on the European market. Biden puts the doctrine of ‘Buy American’ in a green jacket. The president is spending a large amount of aid to restore American companies in their own country. Steinbach warns that the national government should take a closer look at the contracts with Tesla if the battery factory is stopped now. In particular he refers to the billions in government aid that Tesla has received for the German factory. Tesla’s Gigafactory has been in operation since this year and was completed with little delay.