Tesla Will Officially Build Its Next Gigafactory In Berlin, Germany


Today Tesla's CEO Elon Musk confirmed that its next massive, "Gigafactory" would be in Germany near the city of Berlin.

We've known for years that the automaker had ambitions to bring production onto European shores, we just didn't know where. In a rather cryptic tweet Elon Musk finally confirmed that it would be near Berlin, Germany where the GIgafactory 4 would be located.

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The facility is named Gigafactory 4 as it will be the fourth location bearing the "Gigafactory" name. Gigafactory 1 is in Nevada, USA and is currently one of the largest buildings in the world. Tesla's Gigafactory 2 is less well known, and is in upstate New York.

Gigafactory 2 only produces solar cells and does not build any Tesla vehicles, which means it probably shouldn't be labeled Gigafactory. However, enough off-topic pondering.

Gigafactory 3 is the brand spanking new facility in Shanghai, China. That facility was completed ahead of schedule is already beginning to crank out Model 3's and Model Y's for the Chinese domestic market.

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Now Tesla (NASDAQ:TSLA) is going to copy its battle plan that worked so well in Shanghai. The new factory near Berlin will begin by producing batteries, powertrains, and complete vehicle production starting with the company's new Model Y compact SUV then later its mass-market sedan the Model 3.

Musk first discussed the Berlin location at an awards show in Germany today.

Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany. We are also going to create an engineering and design center in Berlin, because Berlin has some of the best art in the world.

-Elon Musk 11/12/19

Tesla currently hopes to produce over 150,000 vehicles per year at its Gigafactory 3 in China, and there's no reason why it won't aim for this when it comes to the German Gigafactory.

Last year it sold about 30,000 vehicles in Europe in total. Of course, importing duties and other costs hurt its ability to compete and sell units in Europe, so once GF 4 comes online sometime in 2021 or 2022 it might be able to quintuple its volume of shipments in the old country.

The author has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.