Nov 13, 2019

Elon Musk announces new Tesla factory in Germany

Ben Geman, author of Generate

Photo: Yichuan Cao/NurPhoto via Getty Images

Tesla CEO Elon Musk announced Tuesday that the electric automaker's planned European factory will be located near Berlin, Germany.

Driving the news: It marks the Silicon Valley electric automaker's second international plant, joining a recently launched facility in China.

  • Musk said the plant would build batteries, powertrains and cars, starting with the planned Model Y, a small SUV.
  • The company hopes to have the plant running in 2021, according to multiple reports.

Why it matters: Tesla will "compete with some of the world’s biggest auto makers on their home turf," the WSJ notes.

  • "The move takes the great electric car race to Volkswagen's backyard," CNN writes, noting VW's heavy investments in EVs.

What they're saying: “It’s strategic to lure German automotive talent to Tesla, and it’s a statement that Elon wants to one-up auto companies from that region," Gene Munster of the VC firm Loup Ventures tells Bloomberg.

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