“Danke, Deutschland!” With this greeting, Elon Musk welcomed Tesla’s first “Made in Germany” cars.
“If Musk is dancing, then everything is fine,” observers said, recalling the billionaire’s dance during the opening of Tesla’s giga factory in Shanghai in 2020.
The investment in Grunheide is worth 5 billion euros and is the largest in a German car plant in recent history, Reuters reports.
Musk landed in Germany on Monday, “This is a great day for the plant,” said the richest man on the planet, describing the facility as “another step towards a sustainable future.”
After two years of fighting bureaucracy, production was inaugurated on Tuesday, and 30 customers sat behind the wheel of their new Model Y – an all-electric, compact SUV.
Economy Minister Robert Habeck, who attended the opening on Tuesday with Chancellor Ola Scholz, said it was “a special day to transform Germany’s mobility”. As part of efforts to reduce dependence on Russian energy, Habek noted that electric cars have moved Germany one step away from gasoline imports. He called for Tesla’s faster involvement in other infrastructure projects, including expanding renewable energy sources.
Musk with German Chancellor Olaf Scholz
Although Musk was often disappointed with the bureaucracy, which delayed his plans for Grunheide, by German standards the factory was up and running in record time. good and free public transport instead of “more cars,” said Lou Winters of the environmental group Sand in the Gears.
The Grunheide Gigafactory in the eastern German state of Brandenburg is Tesla’s first production site in Europe. Locals hope the production will help the region become a hub for electric vehicles. And analysts say the plant’s opening is a “cornerstone of Germany’s digital transformation of the automotive industry.” The gigafactory will attract world-class young professionals who will transfer the accumulated practical experience to universities. “In this way, we can speed up research into intelligent network transport systems in Germany,” said Sahin Albayrak of the Technical University of Berlin.
According to Tesla’s plans, the first phase of the plant will employ approximately 12,000 people, producing up to 500,000 vehicles a year. That’s more than Volkswagen managed to sell globally in 2021 (about 450,000).
Musk will compete with other traditional giants such as BMW, Mercedes and Stellantis.
Separately, the company is building a production facility for batteries. The plans are spectacular, with local workers’ organizations welcoming the factory’s opening. However, in terms of working conditions, Tesla lags behind other German employers, according to Birgit Dietze, a representative of a local union. “A company that stands for high environmental standards must also focus on high social standards with correspondingly good working conditions,” says Dietze.
Tesla’s focus on Europe comes at a time when the Old Continent is struggling with the incredible energy costs that have led to rising gasoline prices, prompting some drivers to consider electric alternatives.
Tesla has also been spared the pain of a shortage of key materials and supply chain disruptions due to the Russian invasion of Ukraine, which has affected other carmakers.
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