Tesla Inc. is reportedly set to begin production at its factory in Berlin, Germany from next month. The EV giant will commence the manufacturing process with around 30,000 electric vehicles.
It is to be noted that the company was expected to begin production in July this year, but the process was postponed as it did not receive environmental clearance.
Local regulators are expected to grant necessary permits within a few days. Moreover, five units of the Tesla Model Y have already been completed at the Gigafactory located near Berlin, although not on the production line. The serial production will initially start at 1,000 electric vehicles per week, with a gradual increase in its capacity utilization.
A spokesperson from the economy ministry stated that Tesla has withdrawn its application for state funding for this factory. He added that the company will continue its plans for the Berlin-Brandenburg battery factory, but without any state IPCEI (Important Projects of Common European Interest) funding.
For the uninitiated, IPCEI brings together knowledge, prowess, financial resources, and opportunities with economic actors across the European Union for overcoming important market or systemic gaps and societal hurdles that could not be solved otherwise.
In January, the EU had approved a plan that would provide state help to BMW, Tesla, and other EV manufacturers, so as to promote the production of electric vehicle batteries with a focus on reducing imports from China.
As per the proposed plan, Tesla was expected to receive nearly USD 1.28 billion (EUR 1.14 billion), with the final decision to come by the end of the year.
Meanwhile, the EV maker is also planning to invest over USD 188 million in its factory in Shanghai, China, for upgrading equipment as the plant nears outwearing its current capacity by the end of 2021. The factory’s annual production capacity is around 4,50,000 vehicles.
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