Tesla Moves A Step Closer To Opening First European Factory With German Property deal
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U.S. electric car pioneer Tesla has agreed to buy a property on the outskirts of Berlin, bringing it a step closer to opening its first European factory, local authorities said on Sunday. The U.S. carmaker last November announced plans to build a giant factory in Gruenheide, in the eastern German state of Brandenburg, giving it the coveted “Made in Germany” label just as local rivals prepare to launch competing models.
Tesla’s board of directors approved a purchase agreement with the state of Brandenburg on Saturday to acquire a 300-hectare property, Brandenburg government spokesman Florian Engels said in a statement. The state parliament’s finance committee had already approved the sale on January 9.
A Tesla spokeswoman confirmed the deal. The agreement states a preliminary property price of 40.91 million euros ($45.36 million) which can be amended if an external review provides a different value, Engels said.
The property is in a designated industrial area and is being checked for weapons from World War II as there are most likely unexploded U.S. bombs still in the ground, he added.
Politicians, unions and industry groups have welcomed Tesla’s move which is expected to create up to 7,000 jobs in Brandenburg.
But some 250 locals took to the streets to protest on Saturday, fearing the factory could endanger the water supply and wildlife in the surrounding forest.
Questions & Answers
Q.What is the expected property price for Tesla's new factory site?
What is the expected property price for Tesla's new factory site?
The preliminary property price agreed is 40.91 million euros, which is equivalent to 45.36 million US dollars. This price could be adjusted following an external review of the value.
Q.What potential environmental concerns have been raised by locals regarding the factory?
What potential environmental concerns have been raised by locals regarding the factory?
Around 250 local residents protested, expressing fears that the new factory could jeopardise the water supply in the area. They also have concerns about the impact on wildlife in the surrounding forest.
Q.What potential issue needs to be addressed on the factory site before construction can begin?
What potential issue needs to be addressed on the factory site before construction can begin?
The 300-hectare property is being checked for unexploded World War II weapons. This is because there are likely unexploded U.S. Bombs still in the ground within the designated industrial area.
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