Tesla has reportedly not received any government subsidies for its EV factory, Giga Berlin, which has been operational for nearly a year. According to a recent report by Teslarati, the state and federal governments of Germany have typically supported companies building new factories by providing incentives of up to 45% of the factory’s costs.
Despite Tesla’s application for funding made over two years ago, the company has not received any financial assistance from the government. The application for funding is an ongoing process, according to Brandenburg’s Ministry of Economic Affairs. The decision of whether to approve Tesla’s funding request depends on the EU Commission.
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German media outlet BZ suggests that one reason for the lack of government funding is the company’s operating style. Tesla is known to move quickly and change plans frequently as better options arise, which does not fit with Germany’s meticulous and cautious approach. Tesla reportedly initially requested 1.1 billion euros of support, but the number has been changed often, meaning that paperwork had to be resubmitted multiple times.
Despite the delays and lack of government support, Giga Berlin has been ramping up production of Model Y crossovers, employing thousands of people, according to Brandenburg Economic Minister Jorg Steinbach. If the project costs some 2 billion euros, Tesla could potentially receive over $130 million in support from Germany, or 6.8% of the total funding, according to Teslarati.
