Tesla: Gigafactory wants to get by without further subsidies

In Grünheide, Brandenburg, one of Europe’s best-known construction sites is nearing completion. Starting next year, Tesla’s Gigafactory will not only produce lots of vehicles from the popular e-car manufacturer, but also the batteries that go with them. Even though the proverbial gigantic construction project has often been criticized for receiving preferential treatment from politicians, a recent report seems to say rather the opposite. For example, the U.S. vehicle manufacturer has probably waived a billion-dollar subsidy from the German Federal Ministry of Economics.

No additional battery factory

Originally, it was planned that Tesla would receive billions of euros in funding from the Federal Ministry of Economics as well as the Brandenburg Ministry of Economics for the construction of its battery production factory. Now it has become known that Tesla wants to do without its subsidy. However, the carmaker wants to stick to its original plans.

“Tesla, however, continues to adhere to its plans for the battery and recycling factory in the Gigafactory Berlin-Brandenburg.”

The fact that Tesla is now not turning tail, but continues to expand its Gigafactory, of course also pleases politicians. After all, according to the Federal Ministry of Economics, this is a clear sign:

“that Germany is an attractive investment location and foreign investors are investing in Germany and Brandenburg.”

Furthermore, the Ministry of Economics affirms that with the renunciation of Tesla, the subsidy money by no means dissolves into thin air.

“The state subsidies not used by Tesla are now available for other projects.” The aid for the project in Grünheide had already been approved by the EU Commission.

Structural further development for Brandenburg

Even when Elon Musk visited Grünheide in Brandenburg for the first time, you could clearly feel how happy the state was about the choice of location of the native South African. The Gigafactory in Grünheide could have set a real ball rolling in terms of the attractiveness of Brandenburg’s rural idyll. Let’s not kid ourselves. It is above all the proximity to Berlin that makes Grünheide so attractive for Tesla. Nevertheless, the Gigafactory alone, with its many jobs and the expansion of the local infrastructure, should be a real benefit for the region. It is now becoming increasingly clear that the Gigafactory is not only intended to build Tesla models for European end customers. Battery production is also a focus here.

The e-car manufacturer wants to produce revolutionary batteries for its own models in Grünheide. Incidentally, Musk’s rejection of the billion-euro subsidy does not mean that he will not receive any money from Germany for the construction of his factory. He has already received the subsidies for the Gigafactory itself. So why is he now cancelling further subsidies? Tesla is in a very good economic position and will probably not need the cash injection. Perhaps it also wants to make itself a little independent of the German authorities. After all, the company is still waiting for approval from the state of Brandenburg. Elon Musk himself is still confident. However, his dream of getting the assembly lines moving this year will most likely not come true.