Tesla CEO Elon Musk danced for joy at the inauguration of his “Gigafactory” electric car plant in Berlin on Tuesday, holding two years of bureaucracy and delays to watch customers with the first Model Y vehicles made in Europe.
“Thank you Germany!” (Thank you, Germany) Musk tweeted after the red ribbon ceremony, where he joined the workers in applauding the first 30 drivers to climb behind the wheel of their new cars.
The US billionaire even broke into a small dance during the handover, reviving memories of the slightly heavy jig he made at a launch event in Shanghai in 2020 that illuminated the internet.
The factory opening employs a strenuous two-year approval and construction process that Tesla has seen and a series of administrative and legal hurdles, including complaints from residents about the site’s environmental impact.
After construction began at its own risk, Tesla finally won the formal go-ahead from the regional authorities to begin production earlier this month.
The Gigafactory in Gruenheide, in the eastern state of Brandenburg in Germany, is Tesla’s first production site in Europe, and officials hope it will help the region position itself as a hub for electric vehicle production.
The California company eventually aims to employ some 12,000 workers at the site, which each year produces about 500,000 Model Y cars, the company’s all-electric, compact SUVs.
The arrival of Tesla is expected to shake up the German flagship automotive industry, setting the stage for fierce competition with rivals Volkswagen, BMW and Mercedes-Benz as they pivot from traditional engines to cleaner electric vehicles.
“The new era in the automotive industry has now also arrived in Germany,” said analyst Ferdinand Dudenhoeffer of the Center for Automotive Research.
– Away from Russian oil –
Tesla’s focus on Europe comes as the continent struggles with sky-high energy costs, which have pushed up gas prices, prompting some drivers to look into electric alternatives.
The “Giga Berlin-Brandenburg” is “one of the biggest strategic aspirations for Tesla in the last decade and should continue to increase its market share in Europe in the coming years as more consumers aggressively go the EV way”, analysts at investment firm Wedbush said.
But Tesla has not been spared the pain from lack of key materials and supply chain disruptions, partly linked to the Russian invasion of Ukraine, which are also plaguing other motorists.
Musk tweeted last week that the company had seen “significant recent inflationary pressures” in raw materials and logistics.
– ‘Special day’ –
Economy Minister Robert Habeck, who attended the inauguration on Tuesday with Chancellor Olaf Scholz, said it was “a special day for the transformation of Germany’s mobility”.
In an angle on efforts to reduce confidence in Russian energy, Habeck said electric cars have taken Germany “a step further from oil importers”.
He also called for more “Tesla speed” and other infrastructure projects, including the expansion of renewable energy.
Although Musk was often frustrated by the Red Band, which slowed down its Gruenheide plans, the factory was up and running by German standards in record time.
The inauguration was not widely welcomed, however, with environmental activists protesting near the site.
Among her demands was a call for better and free public transportation instead of “even more cars,” said spokeswoman Lou Winters of Sand in the environmental group Gears.
bur-mfp / fec / lth
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