Tesla In Talks With Germany And Netherlands For Its First Gigafactory In Europe: WSJ

According to media reports, talks about the construction of its first ever major European factory is being ongoing between the electric car maker Tesla and authorities in Germany and the Netherlands.

A report in The Wall Street Journal claimed that Tesla is planning to set up a new Gigafactory in Europe where both cars and its batteries would be manufactured and the company has completed preliminary discussions with two German states trying to woo the company.

The report however said that there could ultimately be no outcome because the talks are still in their early stages.

With production underway at the Gigafactory, the company is churning out lithium ion battery cells by the masses in hopes to ultimately reduce the cost of sustainable energy

Germany is favored as the preferred destination for the first European Gigafactory of Tesla by its Chief Executive Officer Elon Musk, he had said in June.

“Perhaps on the German-French border makes sense, near the Benelux countries,” Musk had said on Twitter, responding to a public tweet.

Pruem, Germany, which is about 30 kms from Belgium and about 100 kms from the French border already houses an engineering division of Tesla.

There were no comments made by Tesla on the report.

Plans of the company to build its first overseas factory in China was unveiled by it earlier this month.

Despite the claims by Musk of the company turning into a positive cash flow one this year, analysts are not so sure. They have predicted that a long list of projects at Tesla will have to be funded through raising money which includes the launch of an electric semi truck and a pickup truck.

It has bene a struggle for Tesla to meet up with its own weekly target for the production of its Model 3 sedan.

The current Gigafactory of Tesla is situated on Electric Avenue in Sparks, Nevada and the name of the factory has been given based on the term ‘giga’ – which is a unit of measurement which represents billions. With a size of 10 million square feet when completed, the Gigafactory – estimated to get completed in 2020, would be one of the largest buildings in the world. by 2018, the Gigafactory would be churning out 35 gigawatt hours of batteries, Tesla claims, which is equivalent to the power production for the entire world in 2014. To put the scale into perspective, 52 gigawatt hours of energy per year is used by New York City.

With a potentially 4.9 million square feet of operational space across several floors, the Gigafactory in its present form, already has of 1.9 million square feet of operational space.

“We are still less than 30 percent done, and once complete, we expect the Gigafactory to be the biggest building in the world,” Tesla said

(Adapted from DailyMail.co.uk)

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