Daily Management Review

Tesla to buy land near Berlin for its first European plant


American electric vehicle manufacturer Tesla Inc. agreed to acquire a plot of land in a suburb of Berlin, where the company will build his first European plant, local authorities say.

Tesla's board of directors has agreed to sign an agreement with the federal state of Brandenburg on the purchase of land of about 300 hectares in the commune of Grünheide, located about 40 km southeast of Berlin, according to a statement by the official representative of the government of the federal state of Brandenburg, Florian Engels.

The preliminary value of the land is €40.91 million, but it can be changed by an independent evaluation.

In November, Head of Tesla, Elon Musk, announced plans to build the first European factory in Germany called Gigafactory 4, which will be used to assemble electric vehicles.

It is expected that from the summer of 2021, 150 thousand Model 3 and Model Y electric cars will roll off the assembly line annually. In the future, production should increase to 500 thousand cars a year.

According to media reports, last weekend in Grünheide about 200 local residents went to a protest, fearing that the construction of the plant could jeopardize water supply and wildlife in the surrounding forest.

Tesla opened its first factory outside the United States in Shanghai. In early January, the company began mass deliveries of Model 3 electric vehicles manufactured at the Shanghai Gigafactory 3.

source: reuters.com