Tesla spoke for years about building a complete car manufacturer in Europe, but the automaker claims that it is finally approaching a location for its European gigafactory.
Tesla European Factory
It's not good It's well known, but Tesla has been operating a final assembly plant in Europe for a long time.
The plant is located in Tilburg, the Netherlands, and the automaker expanded the plant to a new, 78,000-square-foot facility in 2015.
Tesla's Tilburg plant is carrying out the final assembly process and testing for S and X models certain European markets, including the Netherlands, Belgium, France and Germany. The factory has an indoor test track for quality checks before the cars are delivered to new owners.
However, Tesla has also talked about using more production capacity in Europe to build cars from scratch in the marketplace. [1
Elon Musk, CEO of Tesla, has been talking for some time about a complete battery and vehicle factory in Europe.
Several European countries have even launched campaigns to win Tesla for their home market.
] Tesla should confirm a site for a factory in 2017, but that never happened.
Last year, Musk said that Germany was the "leading choice" for a factory in Europe, and he even stated that "the German-French" border makes sense "for a factory near the Benelux.
Now Tesla says it is "accelerating" its efforts to bring a gigafactory to Europe.
The automaker wrote in the letter of its last shareholder this week:
We are also accelerating our efforts in the European gigafactory and hope to complete a siting in the coming quarters.
In a teleconference following the publication of the letter, Musk added:
"We also need to close a site for our European gigafactory before the end of the year. "
The CEO also expects construction to be" in full swing "over the next 12 to 18 months, with the European gigafactory in operation by the end of 2021.
] Electreks Take
Hopefully, this is the third time the charm, because Tesla has already spoken two more times, just about to announce a gigafactory in Europe.
But I think that makes more sense now 5 billion dollars in the bank and that is more cash than ever before. Several European countries are struggling to have battery and EV factories on their market, and Tesla is likely to bring incentive packages to the table.
With cash available, a good incentive package and Tesla's capital efficiency improvements to use production capacity This could be the perfect time to start working on a European factory and get it up and running in time for the launch of the Model Y in Europe close.
What do you think? Let us know in the comment section below.
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