Tech billionaire Elon Musk will spearhead the official ribbon-cutting ceremony to open the new Tesla Gigafactory in Berlin, Germany. This will be the first manufacturing facility of the automaker based in Europe.
The business tycoon looks forward to this expansion following the previous construction of Tesla factories in the US and China.
Tesla Gigafactory in Berlin to Officially Open
According to a report by CNBC, Musk will cut the red ribbon in the new Tesla plant in Germany, particularly in Grünheide, Brandenburg. The location is said to be a town famous for its coal production.
The EV manufacturer expects that the newly-opened factory will be able to reach a production of 500,000 units yearly.
As of now, the company has been suffering from several issues, specifically the consecutive postponements for the Model Y and three vehicles. In addition, the electric vehicle maker could be experiencing some difficulties in keeping up with the current demand for cars.
Of course, the COVID-19 cases continue to rise in China -- that's why Tesla decided to close the Shanghai-based factory for a while. For at least two days, there will be limited production for the Model Y and 3 (China version).
Regarding the demand for cars in Europe, Musk noted that the region's demand is still at a high level. With the debut of the Tesla Giga Berlin, many European buyers will now look forward to the production in Germany rather than previously waiting for the shipments from China.
Last November, the German-based Tesla factory faced a series of delays in its construction. For Musk, the agencies involved in the decision were not doing their things in the right way.
With that, the Tesla founder expressed his disappointment over the involved agencies there. For him, such treatment could mean that building a new Tesla plant in the region was unwelcome.
Related Article: Tesla Giga Berlin to Take a Year to Reach Volume Production, Elon Musk Reveals New Paint Colors
Tesla' First German-Made EVs
With the arrival of Tesla in Germany, Musk knew that this expansion could generate more revenue. It was regarded as the firm's biggest investment in Europe recently.
According to the latest report by Reuters, 30 clients together with their families have received the Tesla cars upon the arrival of Musk.
"This is a great day for the factory," Musk said. Additionally, he mentioned that it was "another step in the direction of a sustainable future".
In particular, the select clients are set to receive a special configuration for the Model Y Performance. According to the source, each EV costs $70,491.38 or 63,990 euros.
It is expected that more units will arrive next month. As of press time, 3,500 people have been hired in the Giga Berlin plant. Tesla expects it to hit 12,000 for the final count.
Read Also: New Tesla Model Y Spotted at Gigafactory Texas | Production Now Starting?
This article is owned by Tech Times
Written by Joseph Henry
