Tesla picks Berlin for European Gigafactory

Brandenberg premier Any support for Tesla will be in accordance with EU rules

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Britain missed its chance to host the first European factory of US electric vehicle pioneer Tesla because of Brexit, Chief Executive Elon Musk said in remarks reported on Wednesday.

The billionaire surprised the audience at a auto awards ceremony on Tuesday by announcing he would build Tesla's first European plant near Berlin.

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

After launching manufacturing facilities in the USA and China, Tesla's next location is apparently in Europe.

David Bailey, who has researched the impacts of Brexit on United Kingdom automotive at Birmingham Business School, told ZDNet that Musk's hints had fuelled hopes for some sort of R&D center or assembly point in the United Kingdom "if and when" Tesla chose to invest in Europe.

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The government has also started to roll out significant policies. The company also helped build production facilities for electric auto batteries for legacy clients.

"Even if you discount the environmental situation, eventually we will run out of oil. you can't recycle oil", Musk said, adding that his original interest in electric cars went back to "almost high school".

Tesla is estimated to have some 30 percent of the European market for battery-powered cars.

Germany's biggest labor union, the influential IG Metall, welcomed Tesla's plan.

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He said the firm planned to set up a design hub in the capital.

While Germany's renowned vehicle industry is mainly based in the south of Europe's biggest economy, the capital has become a hub for start-ups and has attracted many creative and technology firms since the fall of the Berlin Wall three decades ago.

Who would have thought when Tesla started selling the Model S in 2012 that less than 8 years later it would have a shiny new factory in China and plans to bring EV manufacturing to Germany, the heart of automobile manufacturing in Europe?

Tesla is too small to make a serious dent in the sales of large automakers like Toyota, but a smaller, luxury competitor could have reason to worry, according to a Bloomberg survey of 5,000 Tesla Model 3 sedan owners.

"Tesla is coming to Brandenburg with a big investment", Dietmar Woidke, state premier of Brandenburg, which surrounds Berlin, said in a statement. We have worked hard to achieve this during intense talks and with good arguments.

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