Tesla cuts battery plans for Grünheide

The US company Tesla has apparently abandoned its plans to manufacture complete batteries in Germany. The electric car manufacturer is attracted by tax breaks in the United States.

Contrary to what was initially planned, the electric car manufacturer Tesla will apparently not produce complete batteries at the Grünheide site. This was announced by the Brandenburg Ministry of Economic Affairs. Instead, the electric car maker wants to carry out some production steps in the USA, where there are tax incentives, the ministry said at the request of the Reuters news agency.

Tesla had originally planned to produce the entire battery at the Grünheide site in Brandenburg. Because of the tax breaks in the United States for electric car manufacturers who source batteries made in the United States, Tesla has now changed course.

“Favourable tax framework in the USA”

“Tesla has started the production of battery systems in Grünheide and is preparing to manufacture battery cell components. The company has prioritized further production steps in the USA because the tax conditions are more favorable there,” said the Brandenburg Ministry of Economic Affairs. Tesla did not respond to requests for comment, Reuters reported.

Company boss Elon Musk had announced the Berlin “Gigafactory” as the largest battery factory in the world. At the opening in March 2022, he said the battery plant will reach series production by the end of 2023.

Billions investment in Nevada

Tesla is currently struggling to ramp up production of its battery cells at its Fremont, California, and Austin, Texas factories, which experts attribute to new and untested techniques.

At the end of January, the US group announced that it would invest more than $3.6 billion in expanding its “Gigafactory” complex in Nevada to build two new factories: one for the mass production of the long-delayed Semi electric truck and the other for making the new 4680 battery cell.

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