GRUENHEIDE: Elon Musk was cheered as he oversaw the handover of Tesla’s first German-made cars at its Gruenheide plant, marking the start of the inaugural European hub for the automaker.
Loud music played as 30 clients and their families got a first glimpse of their shining new vehicles through a glitzy, neon-lit Tesla branded tunnel, clapping and cheering as Tesla Chief Executive Musk danced and joked with fans. “This is a great day for the factory,” Musk said, describing it as “another step in the direction of a sustainable future”.
Musk said that Tesla is likely to launch a test version of its new “Full Self-Driving” software in Europe, possibly next year depending on regulatory approval. “It’s quite difficult to do full self-driving in Europe,” he told factory workers, saying much work needs to be done to handle tricky driving situations in Europe where roads vary a lot by country.
German Chancellor Olaf Scholz, who also attended the event, lauded the gigafactory as the future of the car industry, but it has faced opposition and some environmental activists blocked the factory’s entrance while displaying banners flagging its high water use.
Musk had hoped to begin output from the factory eight months ago, but licensing delays and local concerns around the plant’s environmental impact held up the process.
Tesla was forced to service European orders from Shanghai while it awaited its German licence, adding to rising logistics costs at a time when it was struggling with industry-wide chip shortages and other supply chain disruptions. It got the final go-ahead from local authorities on March 4 to begin production in Germany, provided it met conditions ranging from its water use to air pollution controls.
Tesla said the new owners received the Model Y Performance configuration, a vehicle costing 63,990 euros ($70,500) with a 514 km (320 miles) range, adding that new orders from the plant could be delivered from April.
Tesla said that around 3,500 of the plant’s expected 12,000 workers have been hired so far. At full capacity, the plant will produce 500,000 cars a year, more than the 450,000 battery-electric vehicles that German rival Volkswagen sold globally in 2021.
It will also eventually generate 50 gigawatt hours (GWh) of battery power, surpassing all other plants in Germany. Tesla is expected to initially import batteries from China for its German-made Model Ys before it starts local battery production.
