Tesla’s Gigafactory 4 in Berlin, Germany is expected to build around 500,000 Model 3 and Model Y vehicles per year, according to a report from Bild, a German newspaper.
In November, Elon Musk traveled to Germany to attend the Golden Steering Wheel awards, where he announced that Tesla’s European Gigafactory will be built in Germany. A Tesla Engineering and Design Center will also be built in the Berlin area, according to the CEO.
Tesla is planning to invest $4.41 billion into the plant that will begin production in 2020, according to German newspaper Frankfurter Allgemeine Zeitung. GF4 is expected to give a boost to the German economy, creating about 10,000 new jobs. That being said, Gigafactory 4’s expected production rate of half a million vehicles a year matches the expected potential of the Fremont factory and Gigafactory 3 in Nevada, both of which have been quoted with a similar production capacity in the past.
Tesla is yet to issue a comment on these recent reports from Germany. That being said, the 500k target makes sense if one were to consider the fact that Gigafactory 4 is starting its production with the Model Y crossover, a vehicle that is expected to outsell the Model S, X, and Model 3 combined. Considering the demand for crossovers in the European region, a wave of Model Y when GF4 starts operation would benefit Tesla.
The decision to put Tesla’s next factory in Berlin was based on a multitude of things. There was the idea of GF4 being placed somewhere in the UK, but Musk and Tesla had observed Brexit as a possible hurdle and the uncertainty of the situation “made it too risky to put a Gigafactory in the UK,” the CEO said during an interview with Auto Express.
However, Germany’s reputation for building some of the best and most dependable cars in the world also played into the decision. “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,” Musk said.
Initial production of the Model 3 and Model Y is expected to begin in 2021 with the help of 3,000 employees, according to Bild. The Model 3 has gained the reputation of one of the most popular cars in the world and has won numerous “Car of the Year” awards from publications like the UK’s Auto Express and Parker’s Magazine. The Model Y crossover is expected to be delivered to buyers in Summer 2020 and has been spotted on public roads on numerous occasions recently.