Tesla CEO Elon Musk Announced Gigafactory in Berlin | Financial Buzz

Tesla CEO Elon Musk Announced Gigafactory in Berlin

Tesla, Inc. (NASDAQ: TSLA) Chief Executive Officer Elon Musk announced on Tuesday that the Company plans to build a Gigafactory and engineering and design center in Berlin, Germany. 

Musk announced that plans while speaking at an awards show in Germany on Tuesday.

The Gigafactory in Berlin will mark Tesla’s fourth facility. Musk mentioned that the facility will be located near the new airport in the Berlin area.The Company operates its first Gigafactory battery plant in Nevada near reno; a factory for charging equipment and power electronics near Buffalo, New York; and its Shanghai facility.

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

Shortly after, Musk tweeted “GIGA BERLIN” and mentioned that he will plan to “build batteries, powertrains & vehicles, starting with the Model Y.”

In Tesla’s third quarter financial results, the Company already noted that it plans to manufacture its Model 3 vehicles at the European plant.

Musk has talked about plans to develop a facility in European for years now. In 2016, the Company acquired a German manufacturing and automation design firm, Grohmann Engineering. Musk suggested multiple times on social media that the European factory should be based in Germany.

By establishing a factory in Berlin, it will help Tesla avoid difficulties and expenses with exporting automotive parts from the U.S. to Europe. Additionally, it could also help the Company work around uncertainty about the tariffs.