Tesla is looking to take off the pressure from its U.S. and China-based manufacturing units. On Tuesday, Tesla CEO Elon Musk will officially start its first manufacturing unit in Europe. Tesla’s CEO will inaugurate the new plant at Giga Berlin, and it is also called Giga factory Berlin-Brandenburg, which is in a small coal town Grünheide in Brandenburg, Germany.
The new plant has the potential of manufacturing approximately 500,000 vehicles per year.
There have been lengthy delays in delivering specific models like Model Ys and Model 3s in various parts of the world. Tesla is struggling to keep up with these demands.
As Covid-19 cases resurged in China last week, Tesla temporarily shut its manufacturing in the Shanghai plant. For at least two days, models Y and three productions were limited.
Cars have been exported from China to customers in Europe by Tesla in recent quarters.
Europe generates a heavy demand for Electric Vehicles, and now Tesla can rely on its European plant instead of the sole export from China.
The Giga Berlin plant was several years in the making. Expanding on a global level is on the top of Tesla’s list following the establishment of Gigafactory 3 in Shanghai in 2019. In Austin, Texas, Tesla has recently opened a new plant.
Elon Musk lauded German engineering in November 2019 when he announced his plans to develop a plant in Germany.
He said that German engineering is the best as the world knows already. Well, the main reason for him opening the Gigafactory Europe in Germany. He also has plans to develop a centre for design and engineering in Berlin as he believes that Berlin has some of the best art in the world.
On March 4, Tesla got its conditional approval from German authorities.
However, a few months of delays were expected in receiving the conditional license for Brandenburg’s vehicle and battery plants.
Tesla wanted to start full-fledged production from the summer of 2021 itself. But the Covid-19 pandemic, environmental issues, complications and disruptions in supply chains slowed its progress.
The factory is up and running now, but the main issue prevailing is water usage. Tesla will have to provide evidence of appropriate water usage and pollution control.