Elon Musk may regret putting Tesla’s first European plant in Germany.
Late last year, the company decided to forgo 1.14 billion euros of state aid because it opted to try producing a new type of battery cell in Texas first. The Wall Street Journal reported this month that the company was pausing plans to make battery cells in Germany and had discussed shipping cell-making equipment to the US.
“The commitment in Gruenheide remains unchanged, especially regarding expansion plans for automobile production,” Steinbach tweeted after a conversation with Tesla representatives in Washington. “The battery factory will be completed. Internal process modifications and prioritizations are pending. But the factory is coming.”
One theme dominated the conversations: Just-in-time production, the workers said, has become untenable due to supply-chain snags, Covid-caused factory shutdowns and skyrocketing logistics costs. This is the reason Tesla is trying to expand the factory with the warehouse to store more parts and a multi-track freight yard to shift deliveries to trains from trucks.
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