A recent report from Germany has suggested something quite interesting about Tesla Gigafactory Berlin. The Model Y factory has not received a single cent in government subsidies as of date.
Giga Berlin has been operational for almost a year now, producing Tesla Model Y crossovers for the market. The factory is still ramping up its operations, but it is already employing thousands of people. Brandenburg Economic Minister Jorg Steinbach has noted in a previous statement that the facility employs about 9,000 people.
As per German publication BZ, Giga Berlin has not received a single cent of government subsidies since it started construction. This is quite surprising as companies that build new factories in Germany typically receive government help. The state and federal government even pay up to 45% of the factory’s costs at times, the publication noted.
Tesla actually submitted an application for funding in November 2020, over two years ago. But as per Brandenburg’s Ministry of Economic Affairs, Tesla has been unsuccessful so far. “Tesla has not received a single cent of funding so far. A state aid notification procedure is currently underway in Brussels for Tesla’s application,” the Ministry said.
A decision on Tesla Giga Berlin’s funding, whether it gets approved and how much it qualifies for, would depend on the EU Commission.
As per the German publication, the main reason behind Giga Berlin’s lack of government funding is the company itself. Tesla moves very quickly, and it changes plans as better options arise. This is true for the company’s vehicles, and as it turns out, it’s also true for its factories. Initially, Tesla reportedly planned 1.1 billion euros, but the company “changed the application amount very often” and new extensions for Giga Berlin kept being submitted.
That being said, the Ministry noted that Tesla’s application for government funding is an “ongoing process.” Tesla is also reportedly poised to receive 6.8% funding for Giga Berlin. This means that if construction costs reach 2 billion euros, the funding could reach 136 million.
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