Tesla rolls out Model Y from German Gigafactory

On Tuesday, Tesla is slated to deliver the first 30 Model Y cars to customers at its $5.5 billion (5 billion euro) Gruenheide plant in Germany. The development marks the launch of the model from its first European production hub, which in recent history is the biggest investment in a German car factory.

“Excited to hand over the first production cars made by Giga Berlin-Brandenburg tomorrow!” tweeted Musk.

“The chosen clients will receive the Model Y Performance configuration, a vehicle costing 63,990 euros with a 514 km (320 miles) range,” said Tesla while adding, new orders from the plant could be delivered from April.

German Chancellor Olaf Scholz is slated to attend the event.

“Some people didn’t trust Germany could do this,” said regional finance minister Joerg Steinbach. “We showed the world.”

“More than 3,000 of the plant’s expected 12,000 workers have been hired so far,” said Tesla on Tuesday.

The delay in licensing the plant meant Tesla had to service earlier European orders from its Shanghai factory, driving up logistics costs.

“Makes a huge difference to capital efficiency to localize production within a continent,” tweeted Musk.

At full capacity, Tesla’s Giga factory will produce 500,000 cars annually. It will also generate 50 gigawatt hours (GWh) of battery power, surpassing all other plants Germany.

So far, Volkswagen leads the pack in Europe’s electric vehicle market, wherein it has a market share of 25%, while Tesla has cornered 13%.

Musk has said ramping up production will take longer than the two years it took to build the plant.

JPMorgan predicted Gruenheide would produce around 54,000 cars in 2022, increasing to 280,000 in 2023 and 500,000 by 2025.

($1 = 0.9086 euros)

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