Some good news comes today for those waiting for Tesla to fulfill their Model Y and Model 3 orders: Elon Musk will officially open his electric vehicle maker’s first factory in Europe on Tuesday, per a tweet from the CEO, reducing the burden on the company’s existing facilities in the US and China.
Musk will pay his respects at a ribbon-cutting ceremony at the new Giga Berlin (or Gigafactory Berlin-Brandenburg) facility in Grünheide, a coal town in Brandenburg, Germany, CNBC reports. Tesla expects the Berlin plant to make as many as 500,000 vehicles annually – a much-needed increase in production as the company struggles to keep up with worldwide demand.
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On March 4, German authorities granted conditional production approval after months of delays.
Excited to hand over the first production car made by Giga Berlin-Brandenburg tomorrow!
—Elon Musk (@elonmusk) March 21, 2022
Musk has been eyeing a Berlin plant for years, a significant step forward in Tesla’s global expansion plans, which officially began with the opening of the Shanghai-based Gigafactory 3 facility in 2019. Since then, Musk has also opened a factory in Austin. , Texas.
Covid-19 continues to pose production challenges for Tesla. Just last week, an outbreak of cases in China resulted in the temporary closure of Tesla’s Shanghai factory – affecting the output of the Model Y and Model 3 for at least a few days. Recently, the company has filled European orders with Chinese-made cars, so production on the continent will be very profitable.
Related: Elon Musk’s Rage Detailed in New Tesla Book
However, as the Berlin plant considers increasing production further, its water use may become a problem. In a research note on Monday, auto sector analyst Deutsche Bank said it could have an impact on the plant’s future, as “Sources indicate that the company could fully deplete the region’s water reserves with the first phase of plant construction, and would require additional extraction permits for the plant.” expand its capacity even further in the future.”
Tesla Inc was up 1.72% as of 10:18 am EST.
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