Tesla To Open A 'Gigafactory' In Berlin

Tesla Inc (NASDAQ: TSLA) is planning its fourth “gigafactory” to be located in Berlin, Elon Musk confirmed at an event in Germany on Tuesday, according to CNBC.

Benzinga · 11/13/2019 04:39

Tesla Inc (NASDAQ: TSLA) is planning its fourth “gigafactory” to be located in Berlin, Elon Musk confirmed at an event in Germany on Tuesday, according to CNBC.

What Happened

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

Musk said that the factory will be located somewhere near the Berlin Brandenburg Airport, but didn’t divulge any further details, CNBC reported.

Tesla had suggested that it was in the “final stages” of selecting a location for its Europe gigafactory in its third-quarter earnings report in October.

Why It Matters

This will be Tesla’s first manufacturing facility in Europe. The electric vehicles maker has two gigafactories in Nevada and New York in the U.S. and another one under-construction in Shanghai in China.

Musk describes gigafactory as “a machine that builds machine,” The Verge notes. The factory is treated as a product by itself, utilizing heavy automation to build everything Tesla needs under one roof, including lithium-ion batteries, solar panels, and the cars themselves.

Tesla plans to make its Model 3 and Model Y electric vehicles at the new factory, it previously suggested in the earnings report.

The billionaire-run company is hoping to start the production at the Europe factory by 2021, the report said.

The company earlier started accepting orders for its China-made Model 3 cars in October.

Price Action

Tesla closed 1.40% higher at $349.93 on Tuesday.