An upcoming EV chip manufacturing plant in Germany is poised to finally tackle the chip shortage that has ravaged automakers worldwide.
If one thing has become eminently clear over the past three years, it is the fact that the supply chains that bring us everything from cars to surgical masks are incredibly delicate and, further, can benefit from numerous points of origin. Perhaps nowhere has this been seen better than in the scramble for automotive computer chips in the wake of COVID-19 across the world in 2020. Now, according to a press release from German chip conglomerate ZF Friedrichshafen (ZF) and American chip maker Wolfspeed, the two will be collaborating to meet this demand with a new chip fabrication plant in Germany.
The company itself confirmed the plant this morning. The upcoming factory “will be the world’s largest, utilizing innovative manufacturing processes to produce next-generation Silicon Carbide devices.” But the importance of the factory isn’t just due to its potential to meet the near overwhelming demand of automakers for EV computer chips, but in its strategic location.
Saarland, a German state located on the border with France, will reportedly be the home of the upcoming fabrication location. From there, Wolfspeed and ZF would be able to quickly and efficiently meet the demand for EV chips of Porsche in Stuttgart, BMW in Bavaria, and Mercedes in central Germany. Further, it would also be able to meet upcoming demand from Renault and Stellantis just over the border in France.
Even outside of that immediate radius, Tesla’s massive Giga-Berlin facility and Ford’s numerous production locations found in Northern Germany can benefit from this new supply.
Hier in Ensdorf im Saarland, wo einst Kohle verstromt wurde, entstehen mit der neuen Fertigungsanlage viele Arbeitsplätze und effiziente Halbleiter. Wir brauchen sie für E-Autos, Erneuerbare Energien, für die #Transformation. Wolfspeed und ZF stärken so den Wirtschaftsstandort ?? pic.twitter.com/tEt7jvPsus
— Bundeskanzler Olaf Scholz (@Bundeskanzler) February 1, 2023
Neither a production start date nor an estimate of production capacity have been announced, though construction will begin in the first half of this year, pending confirmation from the European Unions. The upcoming plant will supposedly cost €3 billion ($3.27 billion), with ZF holding a minority in the venture. This is part of Wolfspeed’s previously announced $6.5 billion global expansion plan, which included two other production locations in the United States.
German officials also see the new project as a win, one telling Reuters, “Amid the concerns that the U.S. wants to divert investments from Europe with its Inflation Reduction Act, we’re showing that a U.S. firm wants to invest in Germany.” However, it should be noted that Wolfspeed and ZF are likely attracted to Germany following the success of Europe’s own “IRA,” which plans to invest 45 billion euros ($49.03 billion) into computer chip manufacturing throughout the continent. The plan has yet to be finalized by the European Parliament.
“This project is a great transformation driver and a job engine for a traditionally industrial region. Furthermore, it bundles important know-how in Europe and contributes to the implementation of the European Green Deal by reducing energy consumption and CO2 emissions,” said Saarland Minister-President Anke Rehlinger. “We’re proud to have Wolfspeed, and have our region play such a vital role in advancing Silicon Carbide semiconductor innovation.”
The company’s press release noted that Wolfspeed specializes in “silicon carbide chips” typically used in high-voltage use cases, such as EV drivetrains. Manufacturers specifically choose the chips for their ability to operate under high loads while retaining energy efficiency. Wolfspeed already produces these chips en masse and has announced “the world’s largest chip plant,” which will be built in the United States and come online by 2030.
Wolfspeed and ZF have clearly chosen the ideal location for their upcoming plant. And with the ongoing battle for cheaper and cheaper EVs, the company is poised to benefit simply due to its physical proximity. Suppliers are finally considering moving away from China as the sole chip supplier, and in the quest for electrifying mobility, this may be key to a faster transition.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
Elon Musk
Elon Musk is now a remote DOGE worker: White House Chief of Staff
The Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

In a conversation with the New York Post, White House Chief of Staff Susie Wiles stated that Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.
As per the Chief of Staff, Musk is still working for DOGE—as a remote worker, at least.
Remote Musk
In her conversation with the publication, Wiles stated that she still talks with Musk. And while the CEO is now working remotely, his contributions still have the same net effect.
“Instead of meeting with him in person, I’m talking to him on the phone, but it’s the same net effect,” Wiles stated, adding that “it really doesn’t matter much” that the CEO “hasn’t been here physically.” She also noted that Musk’s team will not be leaving.
“He’s not out of it altogether. He’s just not physically present as much as he was. The people that are doing this work are here doing good things and paying attention to the details. He’ll be stepping back a little, but he’s certainly not abandoning it. And his people are definitely not,” Wiles stated.
Back to Tesla
Musk has been a frequent presence in the White House during the Trump administration’s first 100 days in office. But during the Q1 2025 Tesla earnings call, Musk stated that he would be spending substantially less time with DOGE and substantially more time with Tesla. Musk did emphasize, however, that DOGE’s work is extremely valuable and critical.
“I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I’ll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done,” Musk stated.
Elon Musk
Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others
Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.

After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”
While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.
Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.
Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs
“This is ‘finish your cars in America and you win’,” Lutnick said.
Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.
However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.
Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.
Tesla completely dominates Kogod School’s 2024 Made in America Auto Index
It is within reach for many.
Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.
But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.

Credit: Tesla
However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.
Ford has the following vehicles within just five percent of the 85 percent threshold:
- Ford Mustang GT automatic (80%)
- Ford Mustang GT 5.0 (80%)
- Ford Mustang GT Coupe Premium (80%)
Honda has several within ten percent:
- Honda Passport All-Wheel-Drive (76.5%)
- Honda Passport Trailsport (76.5)
Jeep has two cars:
- Jeep Wrangler Rubicon (76%)
- Jeep Wrangler Sahara (76%)
Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.
Chevrolet has several:
- Chevrolet Colorado 2.7-liter (75.5%)
- Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
- Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)
These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.
Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.
Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.
Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.
News
Tesla Cybertruck RWD production in full swing at Giga Texas
Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.
Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.
Giga Texas Footage
As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.
The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.
Cybertruck Long Range RWD Specs
The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.
Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.
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