Nov 26, 2021
Tesla Takes a Pass on $1.3 Billion Aid for German Battery Plant
Bloomberg News
,![The construction of ground works at the Tesla Inc. Gigafactory site in Gruenheide, Germany, on Friday, Aug. 13, 2021. The yet-to-be finished Tesla facility will serve as the backdrop for Armin Laschet's wavering campaign to be Germany’s next chancellor in need of a much-needed boost., Bloomberg The construction of ground works at the Tesla Inc. Gigafactory site in Gruenheide, Germany, on Friday, Aug. 13, 2021. The yet-to-be finished Tesla facility will serve as the backdrop for Armin Laschet's wavering campaign to be Germany’s next chancellor in need of a much-needed boost.](/polopoly_fs/1.1687448.1637931109!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/the-construction-of-ground-works-at-the-tesla-inc-gigafactory-site-in-gruenheide-germany-on-friday-aug-13-2021-the-yet-to-be-finished-tesla-facility-will-serve-as-the-backdrop-for-armin-laschet-s-wavering-campaign-to-be-germany-s-next-chancellor-in-need-of-a-much-needed-boost.jpg)
(Bloomberg) --
Tesla Inc. is forgoing 1.14 billion euros ($1.3 billion) in government subsidies it would be entitled to for a battery factory in Germany.
The U.S. company has informed German authorities it won’t tap the aid for the plant it’s building outside Berlin, Beate Baron, a spokeswoman for the country’s Economy Ministry, told reporters on Friday.
Tesla has almost completed construction of an electric-car factory in the small town of Gruenheide to the southeast of the German capital, and also plans to manufacture battery cells at the site.
While Chief Executive Officer Elon Musk wants to start assembling Tesla Model Ys in Gruenheide before the end of the year, local authorities still haven’t granted final approval for the project.
The Economy Ministry, which had already approved the aid as part of the European Union’s IPCEI battery-innovation program, estimates that Tesla is investing around 5 billion euros in Gruenheide. Der Tagesspiegel newspaper reported Tesla’s decision earlier on Friday.
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