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Tesla’s European Gigafactory will be in Berlin and it’s starting with Model Y production

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Tesla CEO Elon Musk has confirmed the location for its European Gigafactory and it will be in Berlin, Germany. The factory will be responsible for the production of batteries, powertrains, and vehicles, starting with the company’s upcoming Model Y crossover.

Musk made the revelation Tuesday afternoon, following an announcement he made earlier in the day while speaking at the “Golden Steering Wheel Award” show in Germany.

“Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany,” said Musk. “We are also going to create an engineering and design center in Berlin, because Berlin has some of the best art in the world.”

Gigafactory Berlin would be Tesla’s fourth, coming after Tesla’s massive battery facility and first Gigafactory in Nevada; a solar production plant in Buffalo, New York; and it’s most recent and record-setting Gigafactory 3 in Shanghai, China.

The confirmation of Gigafactory 4 in Berlin follows years of speculation from the community on where Tesla’s European production facility would be located. The California-based electric vehicle maker has fielded preliminary discussions with numerous European countries vying to host its Gigafactory for the production of batteries and electric vehicles in their state.

The location for Tesla Gigafactory Europe became more clear in mid-2018 when Musk began hinting at the possibility of building a factory near Western Germany,

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“Perhaps on the German-French border makes sense, near the Benelux countries,” Musk noted on Twitter.

With the company already having a German presence with its Tesla Grohmann Automation, an engineering division located in Prum, the idea of having its main European-based factory in the country makes sense. As Tesla embarks on the scale-out of its mass-market Model 3 across Europe and the upcoming production of what’s expected to be the company’s largest production vehicle to date: Model Y, having a hub that’s closer in proximity to its customer base and one that builds vehicles to meet local regulations will help the company capture cost and production efficiencies in the long run.

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Currently, Tesla Model S, Model X, and Model 3 vehicles for the European market are produced in its Fremont, California plant and endure a costly and lengthy logistical process for delivery to its customers.

As Tesla continues to improve cash-flow while taking on capital expenditures to meet its earlier-than-expected Model Y production, Gigafactory 4 in Berlin can be seen as a critical piece of the foundation to satisfy worldwide demand. Tesla Model Y is expected to be launched as early as early Summer 2020.

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Tesla China January wholesale sales rise 9% year-on-year

Tesla reported January wholesale sales of 69,129 China-made vehicles, as per data released by the China Passenger Car Association.

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Credit: Tesla China

Tesla China reported January wholesale sales of 69,129 Giga Shanghai-made vehicles, as per data released by the China Passenger Car Association (CPCA). The figure includes both domestic sales and exports from Gigafactory Shanghai.

The total represented a 9.32% increase from January last year but a 28.86% decline from December’s 97,171 units.

China EV market trends

The CPCA estimated that China’s passenger new energy vehicle wholesale volume reached about 900,000 units in January, up 1% year-on-year but down 42% from December. Demand has been pressured by the start-of-year slow season, a 5% additional purchase tax cost, and uncertainty around the transition of vehicle trade-in subsidies, as noted in a report from CNEV Post.

Market leader BYD sold 210,051 NEVs in January, down 30.11% year-on-year and 50.04% month-on-month, as per data released on February 1. Tesla China’s year-over-year growth then is quite interesting, as the company’s vehicles seem to be selling very well despite headwinds in the market. 

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Tesla China’s strategies

To counter weaker seasonal demand, Tesla China launched a low-interest financing program on January 6, offering up to seven-year terms on select produced vehicles. The move marked the first time an automaker offered financing of that length in the Chinese market.

Several rivals, including Xiaomi, Li Auto, XPeng, and NIO, later introduced similar incentives. Tesla China then further increased promotions on January 26 by reinstating insurance subsidies for the Model 3 sedan. The CPCA is expected to release Tesla’s China retail sales and export breakdown later this month.

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Tesla’s Apple CarPlay ambitions are not dead, they’re still in the works

For what it’s worth, as a Tesla owner, I don’t particularly see the need for CarPlay, as I have found the in-car system that the company has developed to be superior. However, many people are in love with CarPlay simply because, when it’s in a car that is capable, it is really great.

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Credit: Michał Gapiński/YouTube

Tesla’s Apple CarPlay ambitions appeared to be dead in the water after a large amount of speculation late last year that the company would add the user interface seemed to cool down after several weeks of reports.

However, it appears that CarPlay might make its way to Tesla vehicles after all, as a recent report seems to indicate that it is still being worked on by software teams for the company.

The real question is whether it is truly needed or if it is just a want by so many owners that Tesla is listening and deciding to proceed with its development.

Back in NovemberBloomberg reported that Tesla was in the process of testing Apple CarPlay within its vehicles, which was a major development considering the company had resisted adopting UIs outside of its own for many years.

Nearly one-third of car buyers considered the lack of CarPlay as a deal-breaker when buying their cars, a study from McKinsey & Co. outlined. This could be a driving decision in Tesla’s inability to abandon the development of CarPlay in its vehicles, especially as it lost a major advantage that appealed to consumers last year: the $7,500 EV tax credit.

Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

Although we saw little to no movement on it since the November speculation, Tesla is now reportedly in the process of still developing the user interface. Mark Gurman, a Bloomberg writer with a weekly newsletter, stated that CarPlay is “still in the works” at Tesla and that more concrete information will be available “soon” regarding its development.

While Tesla already has a very capable and widely accepted user interface, CarPlay would still be an advantage, considering many people have used it in their vehicles for years. Just like smartphones, many people get comfortable with an operating system or style and are resistant to using a new one. This could be a big reason for Tesla attempting to get it in their own cars.

Tesla gets updated “Apple CarPlay” hack that can work on new models

For what it’s worth, as a Tesla owner, I don’t particularly see the need for CarPlay, as I have found the in-car system that the company has developed to be superior. However, many people are in love with CarPlay simply because, when it’s in a car that is capable, it is really great.

It holds one distinct advantage over Tesla’s UI in my opinion, and that’s the ability to read and respond to text messages, which is something that is available within a Tesla, but is not as user-friendly.

With that being said, I would still give CarPlay a shot in my Tesla. I didn’t particularly enjoy it in my Bronco Sport, but that was because Ford’s software was a bit laggy with it. If it were as smooth as Tesla’s UI, which I think it would be, it could be a really great addition to the vehicle.

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Tesla brings closure to Model Y moniker with launch of new trim level

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Credit: Tesla

With the launch of a new trim level for the Model Y last night, something almost went unnoticed — the loss of a moniker that Tesla just recently added to a couple of its variants of the all-electric crossover.

Tesla launched the Model Y All-Wheel-Drive last night, competitively priced at $41,990, but void of the luxurious features that are available within the Premium trims.

Upon examination of the car, one thing was missing, and it was noticeable: Tesla dropped the use of the “Standard” moniker to identify its entry-level offerings of the Model Y.

The Standard Model Y vehicles were introduced late last year, primarily to lower the entry price after the U.S. EV tax credit changes were made. Tesla stripped some features like the panoramic glass roof, premium audio, ambient lighting, acoustic-lined glass, and some of the storage.

Last night, it simply switched the configurations away from “Standard” and simply as the Model Y Rear-Wheel-Drive and Model Y All-Wheel-Drive.

There are three plausible reasons for this move, and while it is minor, there must be an answer for why Tesla chose to abandon the name, yet keep the “Premium” in its upper-level offerings.

“Standard” carried a negative connotation in marketing

Words like “Standard” can subtly imply “basic,” “bare-bones,” or “cheap” to consumers, especially when directly contrasted with “Premium” on the configurator or website. Dropping it avoids making the entry-level Model Y feel inferior or low-end, even though it’s designed for affordability.

Tesla likely wanted the base trim to sound neutral and spec-focused (e.g., just “RWD” highlights drivetrain rather than feature level), while “Premium” continues to signal desirable upgrades, encouraging upsells to higher-margin variants.

Simplifying the overall naming structure for less confusion

The initial “Standard vs. Premium” split (plus Performance) created a somewhat clunky hierarchy, especially as Tesla added more variants like Standard Long Range in some markets or the new AWD base.

Removing “Standard” streamlines things to a more straightforward progression (RWD → AWD → Premium RWD/AWD → Performance), making the lineup easier to understand at a glance. This aligns with Tesla’s history of iterative naming tweaks to reduce buyer hesitation.

Elevating brand perception and protecting perceived value

Keeping “Premium” reinforces that the bulk of the Model Y lineup (especially the popular Long Range models) remains a premium product with desirable features like better noise insulation, upgraded interiors, and tech.

Eliminating “Standard” prevents any dilution of the Tesla brand’s upscale image—particularly important in a competitive EV market—while the entry-level variants can quietly exist as accessible “RWD/AWD” options without drawing attention to them being decontented versions.

You can check out the differences between the “Standard” and “Premium” Model Y vehicles below:

@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper

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