Brexit uncertainty makes Tesla opt for Germany over UK

On Tuesday, the Tesla CEO, Elon Musk, announced that the company would be opening a plant near Berlin to build batteries for its electric cars to be be launched in the European Market. Musk also voiced the Brexit uncertainty as one of the key factors behind his decision to set up a plant in Germany instead of UK, which he was considering earlier.

In an interview with a trade magazine, Auto Express, Musk said that uncertainty over Britain’s decision to exit or be a part of the European Union “made it too risky” for the company to establish it Gigafactory there.

Germany, which closely escaped recession with 0.1% growth in last quarter, is the right place for Tesla for more reasons than one. The big advantage which comes along the way of Tesla over its decision to move to Germany is the tag ‘made in Germany’, which takes care of the quality issues. The country is known for its engineering expertise and is home to two of the world’s biggest carmakers - Volkswagen and Daimler.

On Tuesday night, at a prestigious German car awards ceremony in Berlin, Musk said, “Everyone knows German engineering is outstanding for sure. You know that is part of the reason why we are locating Gigafactory Europe in Germany.”

In order to bring the largest European economy back on track, German carmakers and suppliers are also provided with a 1 billion euro ($1.10 billion) fund set up to accelerate battery cell production. The country’s government is also setting a research facility for better understanding of battery cell development to support the automakers.

It will be company’s fourth Gigafactory, besides having two in US and one coming up in China. Tesla’s first factory to manufacture car batteries was set in Reno, Nevada. Moving to China and now Germany marks a big expansion for the company.

 Author: Rashmi Sacher

Comments

Post a Comment

Popular posts from this blog

GAAC Holding: Restoring Afghanistan's Aviation Sector with Urgent Investments

Image
Afghanistan' s aviation sector has faced numerous challenges in recent years, with severe damage to airports and the suspension of international flights. However, GAAC Holding, a UAE -based company, has emerged as a key player in restoring the functionality and safety of Afghanistan's airports. Through significant investments and dedicated efforts, GAAC Holding aims to revive the country's aviation sector and pave the way for its development. Revitalizing Airport Infrastructure: GAAC Holding's urgent investment of USD 641,000 has played a crucial role in rebuilding Afghanistan's airports. The funds were utilized for various purposes, including repairing runway lights, installing generators, procuring x-ray machines, metal detectors, and explosive trace detectors. Additionally, temporary terminal buildings were set up, and essential supplies such as food and water were provided for airport staff. The company also invested in necessary ground support equipment like tr
Read more

12-year-old piano prodigy who plays Beethoven

Image
  Ahmed can play pieces by Beethoven, Mozart and Bach, and composes his own music. His mother, Eiman Al Aleel that in 2012 doctors said Ahmed, who was then a year and eight months old, had autism. “We took him to many  after he stopped talking or making eye contact,” said Ms Aleeli.  “I am blessed with a loving husband. He is a dedicated father and family man who is taking care of all the needs of our other three children since I am giving 90 per cent of my time to Ahmed,” she said. Enrolling Ahmed in kindergarten and then in school was a big challenge. “One kindergarten told me accepting Ahmed in their facility would tarnish their reputation,” Ms Aleeli said.
Read more

India,China hanging by the cliff, Can they afford a trade war?

India and China are barely holding on their own but what will happen if these countries go on a trade war? Indian has already banned 51 of chinese applications. The picture of a full blown trade war does not look nice. The deadly broder battle between both the countries last month has left the countries sour and has led to taking some drastic measures from both the ends. While India took an aggressive stance against China, the most populous country seems to be in no mood for retaliation. Chinese officials last week said that they were "strongly concerned" about the app ban, for example, but they did not threaten any kind of retaliation. And on Friday, a spokesperson for the Ministry of Foreign Affairs stressed that the two countries should work together, adding that barriers to cooperation "will harm India's interests." But given the interests of both the countries in line, India has more to lose. China has been a critical tarde partner for India and as of last
Read more