Tesla may give up its German factory! – Auto News

It has been claimed that the US-based electric car manufacturer Tesla plans to shelve the battery factory that it plans to build in Berlin, the capital of Germany.

According to the Wall Street Journal’s report, the 50 GWh capacity battery factory that the company plans to build next to the vehicle manufacturing facility that it established near Berlin in March may not be operational due to the tax incentives launched by the USA for battery production.

It is stated that Tesla is warm to tax incentives and by increasing battery production at its facilities in Texas and California, it can supply the batteries of the cars it will produce in Germany from its facilities in the USA.


On the other hand, it is among the claims in the news of the Wall Street Journal that the rising energy costs in Europe after the Russia-Ukraine war caused Tesla to abstain from producing batteries in Berlin.

According to the Inflation Reduction Act (IRA), which was recently enacted in the USA, an incentive of $35 per kilowatt hour (kWh) will be given for each battery cell produced in the USA. Under the law, $10 per kWh is provided for modules manufactured in-country, and additional assistance is provided for companies producing intermediate battery materials.

The incentives to be given are expected to cover one-third of the cost of batteries to be produced in the USA. In addition, it is foreseen that users who buy electric cars will be given incentives of up to 7 thousand 500 dollars.

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