won local approvals in Germany to officially begin production of electric vehicles at its new factory outside Berlin, a key pillar of Chief Executive Elon Musk’s drive to rapidly ramp up production and sales.
Tesla’s factory is a jab at the front of established European automakers, which have invested billions of euros in recent years to develop electric cars and catch up with the US powerhouse.
Berlin, when fully operational, will have a production capacity of 500,000 vehicles and will initially manufacture Model Y compact crossover vehicles. Tesla produced a total of just under a million vehicles last year in the world. The plant is Tesla’s third, after Fremont, California, and Shanghai. Tesla plans to start production at a new plant in Austin, Texas soon.
Tesla’s factory in Germany will play a key role in helping the company grow its market share in Europe by allowing it to customize models with specific variations for European customers. Local production should also help Tesla cut costs, reducing the need for expensive shipping and eliminating import duties.
Write to William Boston at [email protected]
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