Tesla inches closer to Model 3 mass production at Shanghai Gigafactory

During an award ceremony in the German capital, Mr Musk that "we've chose to put the Tesla Giga factory Europe in the Berlin area". Reuters and CNBC report that while speaking at an awards ceremony in Germany, Elon Musk announced the company's "Gigafactory 4" will be located in the Berlin area.

The Berlin Gigafactory will be an all-encompassing facility that will build batteries, powertrains and vehicles, with the Model Y set to be first model to roll off the assembly line, which will be followed by the Model 3.

Tesla producing electric cars in Germany could wave a checkered flag at the local competition, such as Volkswagen, BMW, and Daimler, speeding up innovation in the sector there, Dudenhöffer said.

The US electric carmaker also plans to locate a research and development base in the German capital.

Musk had said in June a year ago that Germany is the frontrunner for its first factory in Europe.

Mass production of the auto will start in 2021 and the vehicle will be sold under the Hengchi brand, China Evergrande said in a statement on Tuesday. It is also concerned about the lack of domestic battery production, and has earmarked €1bn in subsidies to support companies to develop battery-cell production in Germany. The Model 3 picked up Germany's Midsize Car of the Year gong at the evening, beating the BMW 3 Series and Audi A3.

Musk has teased the prospect of a European arm of the company since 2016, suggesting somewhere near the Benelux border would be suitable. Musk previously said that he would like the European facility to be operational by 2021. We have worked hard to achieve this during intense talks and with good arguments. "We offered various locations and this one suited Tesla", Woidke said.

When Tesla built a vehicle manufacturing facility in Shanghai, China, the company dubbed that "Gigafactory 3".

The Model Y is a small SUV scheduled to go on sale in the fall of 2020.

Tesla has started giving media test drives for its first made-in-China Model 3 at its brand-new Shanghai Gigafactory 3, Electrek reported, a mere nine months after breaking ground on the site.

Economics minister Peter Altmaier called it a "milestone in the development of electric mobility and battery expertise", adding that Tesla's decision was "further proof of the attractiveness of Germany as an automobile location".

Tesla's first "Gigafactory" was constructed in the U.S. state of Nevada, and its vehicles are built mostly at a factory in Northern California.

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