Tesla has announced the location of its second factory outside of the United States as Berlin, citing concerns about Brexit when responding to British media’s request for comment on the thinking behind the decision.
Taking to Twitter on Tuesday, Tesla CEO Elon Musk said the factory would build batteries, powertrains and vehicles, starting with Model Y.
Germany is set to be at the centre of an electric car race as the manufacturing powerhouse of Europe is also home to Volkswagen, Daimler and BMW.
Volkswagen has aggressive plans to penetrate the electric vehicle market after its announcement that it will be investing €3bn to electrify its entire product line over the next four years.
Tesla also has plans to locate a research and development base within Berlin. At an awards ceremony hosted by German tabloid Bild, Mr Musk said:
“Some of the best cars in the world are made in Germany. Everyone knows that German engineering is outstanding, for sure, and that’s part of the reason why we are locating our gigafactory Europe in Germany. We are also going to create an engineering and design centre in Berlin.”
Commentators question whether Tesla will be able to retain its leading position in the electric-car manufacturing industry once established automakers such as Volkswagen, which are investing heavily, get into the full swing.