Tesla launched its new car factory outside Berlin
Tesla launched another new Giga factory in Berlin Brandenburg on March 22, 2022. Elon Musk entertained the crowd with his top-notch moves again after dancing in Shanghai Giga factory two years ago. Musk ceremoniously handed over the first Model Y cars to customers.
It’s reported that Tesla Berlin Factory will produce 500,000 vehicles annually, the Tesla plant is targeting output of 2,000 vehicles in its first few weeks of serial production. Demand for EVs remains very high in Europe, and now Tesla can rely on some production on the continent, not solely to be shipped from China.
Musk said German engineering is outstanding, that’s part of reason why they chose Berlin to build the factory. However, during the construction period, Tesla's projects were constantly hindered. It was complained by many environmental protection organizations for disturbing the hibernation of bats, affecting the hibernation of snakes, and affecting the life of lizards. Until the beginning of March this year, it waited for almost two years. After that, Tesla finally got 536 pages final environmental approval document. In the end, it took two and a half years for the Berlin plant to officially start production, which was eight months later than planned, and the construction of the entire Shanghai plant took only 11 months.
It is worth noting that the significance of the Berlin factory to Tesla is not only the increase in production capacity, but also the significance of exploring the European market.
Tesla's main rival in Europe, Volkswagen Group, currently has a 25% market share in the European electric vehicle market, while Tesla's market share is about 13%. In 2021, Tesla will sell about 168,000 vehicles in Europe, including 141,400 Model 3 sales, while Volkswagen will sell about 310,000 electric vehicles. With the start of production at the Berlin plant, Tesla is expected to soon catch up with Volkswagen and even overtake.
For Musk, Giga Berlin is of strategic importance. Together with a new factory in Austin, Texas, he hopes to see Tesla become a real mass producer of electric cars in the course of the year. The US car manufacturer could be able to produce 1.3 million units globally in 2023. If it succeeds, it would leave behind such renowned brands as Volvo and Mitsubishi.