The US manufacturer Tesla opened its first Gigafactory in Europe in 2022 with its factory in Grünheide in the Oder Spree district near Berlin Brandenburg. After two years of construction and approximately €5.8 billion in expenditure, the first cars rolled off the production line on March 22, 2022.

The Tesla factory is Tesla's fourth Gigafactory, which is responsible for car production. There are also Tesla factories for battery and solar panel production in New York, Nevada and Lathrop. In this article we look at the Gigafactory in Berlin Brandenburg, Tesla boss Elon Musk's announcements about the expansion of the factory and the current status of this.

The idea of ​​building this Gigafactory was first floated in November 2019, when Tesla CEO Elon Musk announced that the company was planning a production facility in Germany. The decision to locate in Grünheide was made due to its favorable geographical location and proximity to important European markets.

Up until recently, a location in North Rhine-Westphalia was still under discussion. In the further process, however, Grünheide was chosen due to its good location. A design and development center in Berlin was also originally planned. However, this was not pursued any further.

The approval phase began in January 2020, accompanied by controversial discussions and protests. Tesla's purchase of the forest was approved by the Brandenburg state parliament.

Construction started in the first quarter of 2020, although environmental approval was still pending. The Gigafactory, planned for vehicle and battery production, went through several permit changes, including a downsizing in July 2020.

The clearing of forest areas led to legal disputes with environmental associations. The administrative court temporarily stopped the clearing, but work was later continued. In March 2022, the Gigafactory finally received its operating license.

The Gigafactory Grünheide is located in the municipality of Grünheide, in the district of Freienbrink within the Berlin metropolitan area. The factory, which cost 5.8 billion euros, is one of the largest electric car factories in Germany, alongside the VW factory in Zwickau and the BMW factory in Leipzig.

After the Gigafactory 4 in Grünheide was announced on November 12, 2019, construction began between February 17, 2020 and March 13, 2022. The first cars rolled off the production line on March 14, 2022.

Since the beginning, a workforce of around 12,000 employees has been building exclusively the Tesla Model Y in Grünheide. Production capacity is expected to increase to one million cars per year. Tesla is currently producing 6,900 vehicles per week, which equates to around 360,000 cars per year.

The factory in Grünheide is the first industrial site in Europe where, among other things, the production of battery cells and electric cars is carried out in the same plant.

Berlin Brandenburg Airport is approximately 30 km from the Gigafactory and is therefore in the wider area.

The Berlin Ring, with the "Freibrink" exit, borders Tesla's company premises directly to the west. A new motorway exit from the A10 was also built and was also necessary according to the calculations. Up to 2,800 cars per shift should be able to use the exit, as well as 460 trucks per shift.

The "Fangschleuse Tesla Süd" train station is located approximately 3 km south of the current Tesla entrance. Tesla therefore offers a shuttle service from Erkner to bring employees from the train station to the Tesla factory. The train station is scheduled to be relocated in 2026.

In public transport, there has been a new bus line since December 2020, which connects, among other things, the points "Fangschleuse train station" and "Tesla factory".

Components are delivered by ship from the port of Hamburg to the port of Königs Wusterhausen and from there by truck to the factory, which is around 18 km away. A canal runs five kilometers south of the Tesla factory.

Tesla's Gigafactory Grünheide has a significant impact on Brandenburg, both economically and environmentally. Tesla's decision to build a Gigafactory in Grünheide has drawn extreme attention to the region and sparked various discussions about the long-term impacts.

From an economic perspective, the Gigafactory Grünheide has made a significant contribution to job creation in the region. The construction and subsequent operation of the factory created a multitude of job opportunities, not only directly at Tesla, but also in the supplier industry and other supporting areas.

This positive influence on the employment situation has contributed to strengthening the economy in Brandenburg.

The establishment of such a large and modern Tesla production facility could lead to other companies in the industry settling in the region to benefit from the developing skills and resources.

This could lead to even more increased innovation and research in the field of electromobility, which in turn could have long-term positive effects on Brandenburg's economy and reputation.

On an environmental level, there are both supporters and critics of the Gigafactory Grünheide. Tesla has emphasized that the factory is based on sustainable principles and will use renewable energy for its production.

However, there are also concerns about water usage and impacts on the surrounding nature. The construction of the Gigafactory has led to protests from environmentalists who have raised concerns about water usage and potential impacts on the forest and wildlife.

Last but not least, the factory in Grünheide near Berlin has led to Tesla sourcing even more products from Germany. Tesla spends 6% of its purchasing budget within Brandenburg.

Around 2,000 workers from other companies are employed daily at the plant in Berlin Brandenburg, such as cleaning companies, security, caterers or transport companies.

Brandenburg's economic growth increased by 6% after the opening, while sales for motor vehicle manufacturing in Brandenburg more than tripled to 5 billion euros.

The plan for the Tesla factory in Grünheide was to produce and export the Tesla SUV for the EU market. Great Britain, which is no longer in the EU, still gets its cars from China. However, Tesla's plan is now to equip the Gigafactory Berlin Brandenburg for further export and to ship some of the electric cars produced abroad.

Turkey and India are the markets that Tesla has its sights set on. India would be a new market for Tesla that has not yet been tapped into, as cars from the Gigafactory Shanghai were not allowed to be exported to India for political reasons.

The start of production in 2022 at the Tesla plant in Grünheide marked a milestone for Tesla and the entire electromobility sector.

The opening ceremony was large-scale and was intended to be reminiscent of a folk festival. Tesla boss Elon Musk invited well-known German politicians and celebrities. The first vehicles were also handed over here.

The factory was divided into different parts:

• press shop

• foundry

• paint shop

• body shell

• powder coating

• injection molding

• seat production

• Production Drive

• battery cell production

• final assembly

Of course, the actual start of production deviated from the originally planned 2021.

The Tesla small car, also known as Model 2 or 25,000 Euro model, represents Tesla's efforts to make electric mobility accessible to a wider audience. With a compact shape and a more affordable price compared to Tesla's larger models, the Tesla small car aims to appeal to a wider range of buyers and further promote the spread of electric vehicles.

The Model 2 is designed to offer a range that meets the demands of daily commuting while also being highly energy efficient. Tesla is expected to integrate the latest battery technologies into the Model 2 to ensure optimal performance and range. This could make a significant contribution to reducing CO2 emissions from road transport.

The expected more affordable price of the Model 2 could help to reduce barriers to switching to electric cars and achieve broader acceptance among the population. This could have a positive impact, especially in urban environments and metropolitan areas, where compact vehicles are particularly in demand.

Elon Musk announced some time ago that the Tesla small car will definitely be produced in Grünheide. To this end, the factory is to be expanded and extended. The area required for this was already purchased and cleared by Tesla before construction began in 2020. This means that it can be expected that construction work will progress more quickly than at the Tesla Grünheide factory.

The topic is also highly relevant for Tesla, as competing electric car manufacturers are already further ahead when it comes to developing a small car.

The Citroën EC3, for example, is a small car that was recently launched, is fully electric and is enjoying great popularity. German manufacturers such as VW have also announced an entry-level model for 2025 with the VW ID2. Tesla therefore urgently needs to push ahead with its plans in the entry-level model sector in order to keep up with the competition or stay ahead of it.

To achieve this, Tesla must implement its production targets so that it can soon offer and provide customers with a cheaper car, particularly in Europe, where a small car is expected, with the expansion of the Tesla Gigafactory in Germany.

Tesla's Gigafactory Grünheide, which opened in March 2022, represents a milestone for the company in Europe. With investments of around 5.8 billion euros and a construction period of two years, the factory in the municipality of Grünheide, Brandenburg, has started operations. It is Tesla's fourth Gigafactory, focusing on car production, while the company also operates battery and solar panel factories in other parts of the world.

The idea of ​​the Gigafactory was first announced by Elon Musk in November 2019, and the Grünheide site was chosen due to its favorable geographical location and proximity to key European markets. The construction phase began in Q1 2020, accompanied by approval processes and protests. The Gigafactory went through several approval changes, including a downsizing in July 2020, and was finally approved in March 2022.

The choice of location has a significant impact on Brandenburg. The Gigafactory has not only created many direct jobs, but has also contributed to a 6% increase in the state's economic growth.

The export of the cars produced plays an important role, with Tesla planning to serve the European market and also considering exports to Turkey and India.

However, the factory has also attracted criticism, particularly regarding water consumption and potential environmental impacts. While the use of renewable energy in production is intended to be sustainable, environmentalists have raised concerns about deforestation and the impact on the environment.

Another focus for the Gigafactory Grünheide is the production of the Tesla small car, also known as Model 2. This model, with a price target of 25,000 euros, is intended to make electric mobility accessible to a wider audience.

Elon Musk plans to expand the Gigafactory to include Model 2 production to keep up with growing competition in the affordable electric car sector.

Overall, the Gigafactory Grünheide has far-reaching impacts on the economy, employment and technology transfer in Germany, while at the same time raising challenges in terms of environmental concerns and the use of renewable energy.

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