The future Tesla plant near Berlin.
Photo: HANNIBAL HANSCHKE/REUTERS
BERLIN— Tesla Inc. TSLA -0.65% has secured local approvals in Germany to formally begin electric-vehicle productions at its new plant outside Berlin, a key pillar of Chief Executive Elon Musk’s push to rapidly boost output and sales.
Tesla’s plant is a shot across the bow of Europe’s established auto makers, who have invested billions of euros over the past few years to develop electric cars and catch up with the U.S. EV powerhouse.
Berlin, when fully operational, will have a production capacity to make 500,000 vehicles and will initially make Model Y compact crossover vehicles. Tesla produced a total of just under one million vehicles last year globally. The plant is Tesla’s third, following Fremont, Calif., and Shanghai. Tesla expects to inaugurate production at a new plant in Austin, Texas, soon.
Tesla’s factory in Germany will play a key role in helping the company build its market share in Europe by allowing it to tailor models with specific variations for European customers. Local production also should allow Tesla to cut costs, by reducing the need for expensive shipping and by eliminating import duties.
Write to William Boston at [email protected]
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This post first appeared on wsj.com
