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Tesla announced its first European Gigafactory 1 year ago today: A timeline
One year ago today, Tesla CEO Elon Musk announced that the automaker would open a production facility in Germany. Upon accepting an award at the Golden Steering Wheel awards alongside Volkswagen CEO Herbert Diess, Musk shocked Tesla fans everywhere by revealing its intentions. But what has transpired for the electric automaker since then is a culmination of hard work, dedication, efficiency, and a little bit of luck, and Tesla has been able to erect several buildings of the facility just eleven months after the beginning of the construction process.
November 12, 2019: Elon Musk announces Giga Berlin
“Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany. We are also going to create an engineering and design center in Berlin, because Berlin has some of the best art in the world,” Musk said at the Golden Steering Wheel Awards in Germany last year. Musk also stated that the Model Y would be the initial focus of the new Gigafactory’s production lines.
Tesla CEO Elon Musk and Volkswagen CEO Herbert Diess exchange compliments at an award ceremony. (Credit: YouTube/AUTO BILD)
December 2019: Permits and Regulatory Approval
Tesla was working with the local government in Brandenburg to gain regulatory approval to begin ground clearing measures on the 741-acre plot of land that the automaker had purchased for a bargain price. After the land sale price was finalized, along with the permission of local authorities, Tesla could begin making progress on the land.
Credit: YouTube/J.-U. Koehler
January 2020: Ground clearing begins
After Tesla received preliminary approval, ground clearing began. While this sparked some controversy and concern from environmental groups, Tesla had already been planning to replace trees in areas surrounding Brandenburg, promising to replant three times as many trees as it had removed from the property. To be clear, the trees that were removed were of “inferior quality,” according to Grünheide Mayor Arne Christiani, as they were used for commercial cardboard production.
Credit: Emil Senkel
April 2020: Groundbreaking imminent, land preparation nears completion
On April 20th, Giga Berlin construction crews worked on the ground leveling and excavation of the land at the site. With only 90 hectares of land free from the trees, Tesla had its work cut out. Just a few days before ground leveling, the final tree was removed from the land, making it completely clear of any trees, all while not harming any wildlife.
Credit: YouTube | Giga Berlin / Gigafactory4, build GIGABERLIN
May 2020: Foundational work gets approval, begins
Foundational work began appearing at the site in late May. Tesla had to abide by some guidelines to keep drinking water protected and keep the noise down after 10 pm. Aquifers were also installed to protect any groundwater, which was a growing concern among local residents.
Credit: Twitter | @tobilindh
June 2020: Structures begin appearing, pillars and beams installed
The main pillars of the Drive Unit facility began appearing at the site, which were transported by train. Additionally, the installation of these pillars began just a few days later. It was the first structural portion of any of Giga Berlin’s facilities to be implemented, and prefabricated construction methods contributed to an accelerated construction effort at the site.
Credit: Twitter | @tobilindh
August 2020: Body In White construction begins, Drive Unit facility nears completion
The rapid pace of construction was evident as the Drive Unit facility neared completion, and the Body-in-White facility started construction. With pillars and beams being installed just two months prior for the first time, the rate of construction was certainly impressive. There was still plenty of work to go, however.
The Northern wall of the Drive Unit is nearly completed. (Credit: @gigafactory_4 on Twitter)
September 2020: Elon Musk’s First Visit to Giga Berlin
In a long-overdue visit because of the COVID-19 pandemic, Musk detailed Model Y redesign and battery cell production at the facility. Met with a warm reception, Musk’s first visit to Giga Berlin included visits with local politicians, including vocal supporter Jörg Steinbach, an economic minister.
Credit: @tobilindh | Twitter
Today: Where does Giga Berlin’s progress stand?
Currently, both the Drive Unit and Body-In-White facilities are constructed, with interior fittings being installed. Flooring and machinery have yet to make its way into these facilities, but progress is well ahead of schedule. While Tesla still lists Giga Berlin’s starting production date as Summer 2021, some of those in Europe have stated that deliveries could be expected in Q1 or Q2 2021.
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
