Tesla’s German factory in Grünheide has begun production of the first battery components, according to Jörg Steinbach, Brandenburg’s Minister of Economic Affairs. While Tesla has yet to comment on the launch, Steinbach reports that the factory is busy producing individual components, although further production steps have been moved to the USA to take advantage of incentives under the Inflation Reduction Act.
Tesla announced plans to expand its Grünheide site last autumn and to increase the production of electric cars from 500,000 to over one million annually. However, the company has not yet submitted an application for the expansion plan, according to Steinbach.
See also: Tesla begins Giga Berlin 100-hectare expansion process
Tesla is still awaiting subsidies for its vehicle plant in Grünheide, having applied in November 2020. However, the company declined EU grants for battery production due to disagreements with funding conditions, and the application is still under review in Brussels.
Meanwhile, Tesla is reportedly suspending production in China to upgrade its facility for the new version of its Model 3 sedan, while in the US, business is booming. The company cut prices at the beginning of the year to spur demand and lower inventory, a move that apparently worked. Production of the Tesla Model Y has increased, with all slots for this quarter already allocated.
See also: Tesla Giga Berlin in Germany Has Not Received Government Subsidies
With high demand and increasing production, Tesla’s Grünheide factory is poised to be a significant player in the electric vehicle market. As production ramps up, the company will be able to compete more effectively with other major automakers and establish a dominant position in the market.
