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German officials weigh in on Tesla’s Europe Gigafactory following Musk’s Berlin reveal
Following Tesla CEO Elon Musk’s announcement of Berlin being chosen as Gigafactory 4’s official home at the Golden Steering Wheel Awards on November 12, a number of German officials have voiced their support regarding the decision to produce the company’s next electric vehicles at a plant in the European country.
Tesla was considering multiple European locations for its newest Gigafactory but ended up choosing Germany over the United Kingdom due to the uncertainty in regards to Brexit, the UK’s plan to remove itself from the European Union. The deadline for Brexit has been extended three different times, with the current date being January 31, 2020.
Tesla and Musk observed the uncertainty around the UK’s withdrawal as a potential hurdle and decided to build the factory that will produce the Model 3 and Model Y in the Berlin area. “Brexit [uncertainty] made it too risky to put a Gigafactory in the UK,” Musk said in an interview with Auto Express.
Tesla also plans to build a Research and Development hub near Gigafactory 4. “Some of the best cars in the world are made in Germany. Everyone knows that German engineering is outstanding, for sure, and 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,” Musk added.
Musk’s announcement attracted plenty of attention from members of Germany’s government, including Economy Prime Minister Peter Altmaier, who spoke about possible subsidies for Tesla as a result of Gigafactory 4. “Subsidies have not yet been discussed. It’s clear that Tesla – if it invests in Germany and creates jobs here, will be treated like all other companies in the automobile and automotive industry,” he said to the media. “That means we will treat all players who invest in Germany equally and without discrimination.”
Numerous governments across the world have worked with Tesla to award subsidies to those who choose to buy products from the company. Australia has become increasingly supportive of the sustainable energy movement, offering incentives not only with the purchase of electric vehicles but also with Tesla’s energy storage products.
Tesla will receive support from Germany under the rules of the European Union. Dietmar Woidke, Premier of Brandenberg, the state that surrounds Berlin, said Tesla would get all the help German government officials could offer, given that it falls under the rules of the EU.
“We’re operating within the framework of the European Union’s state aid rules. That applies to all European countries – that’s our framework. We will, of course, do our part to create good conditions for Tesla within these possibilities,” Woidke said.
Governments offering Tesla support is an embrace into the future of sustainable energy. While Tesla has officially announced they will bring vehicle production to Germany, the officials in the country appear to be welcoming it with open arms. This bodes well for the American electric car maker.
The company can help Germany achieve the CO2 targets set in by the European parliament and even the CEO of Volkswagen, Herbert Diess, recognized this by stating Musk and Tesla are pioneers of environmental sustainability. I would say that we share a vision, which is that we only can achieve the CO2 targets and reduce carbon emissions through electric cars,” Diess said during the Golden Steering Wheel Awards.
After Musk accepted and thanked the hosts for the Golden Steering Wheel Award, he said, “I actually an announcement, which hopefully will be well received: We’ve decided to put Tesla Gigafactory Europe in the Berlin area.” Musk’s unveiling of this idea was followed by applause from those in attendance. Musk followed up with, “I come to Berlin a lot. Berlin rocks!”
Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
