Elon Musk picks Berlin for Tesla’s Europe Gigafactory

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Mr Musk made the announcement at an awards ceremony in Germany on Tuesday.

Dubbing the plant "Giga Berlin" in reference to the existing Gigafactories in Nevada and New York, Musk detailed on Twitter that it "will build batteries, powertrains and vehicles, starting with Model Y".

While Tesla will be taking on BMW BMWG.DE , Mercedes DAIGn.DE and Volkswagen VOWG_p.DE on their home turf as they start rolling out zero-emission vehicles, the move fits with the German government's plan to transform the country into a center of excellence for electric mobility.

Tesla production: Coming soon to Germany.

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"Everyone knows that German engineering is outstanding, for sure".

The government has also started to roll out significant policies. Volkswagen kicked off mass production of its new ID.3 electric vehicle at its plant in Zwickau, Germany, a few weeks ago, and is pinning its hopes on this little auto becoming the same kind of success story in the reasonably-priced category that the VW Beetle and Golf were in the past.

"The Berlin location serves two unique goals", said Gene Munster, a managing partner at venture capital firm Loup Ventures.

Asked on stage why he thought Germany is so far behind in e-mobility, Musk replied: "I don't think German is that far behind, I think it's always hard when there's a lot of momentum around an old technology, there's a lot of infrastructure, and a lot of capital that's tied up in an old technology".

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Elon Musk has said that the Shanghai factory will produce at least 1,000 cars per week by the end of the year, and eventually a weekly rate of 3,000 vehicles.

The news has been welcomed, especially in the eastern German state of Brandenburg which surrounds Berlin. We have worked hard to achieve this during intense talks and with good arguments.

According to Bild, up to 10,000 jobs will be created.

Musk's appearance at the awards ceremony is another example of Tesla's efforts to give its cars the German stamp of quality.

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The company has an engineering firm in Pruem, Germany, that specialises in automated manufacturing systems for battery plants.

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