Elon Musk says Tesla's first European production plant will be in Berlin

Just as Shanghai plant is starting up

Tesla Chief Executive Officer Elon Musk said on Tuesday the electric-car maker is going to build a new vehicle factory as well as an engineering and design center in the German capital, Berlin.

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." Earlier in the day at an awards ceremony in Germany, he said the factory will be near the new Berlin airport.

Musk had said in June last year that Germany was a frontrunner for its first factory in Europe. Tesla has an engineering firm in Pruem, Germany, that specializes in automated manufacturing systems for battery-making plants.

In October, Reuters reported that the automaker is aiming to start production for its factory in China amid uncertainties around orders, labor and suppliers.

The automaker reported a profit in its third quarter in late October, surprising investors who doubted about Tesla's profitability and its ability to compete with larger global rivals.


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