Tesla has nixed plans for now to assemble batteries at the electric-car factory it expects to open outside Berlin a year from now.
The company revealed the decision in revised planning documents filed with local authorities in the town of Gruenheide, Bloomberg News reports. Tesla also is shelving plans for now to make unspecified plastic components at the plant.
Tesla’s plant site outside Berlin (Image: EV News Topic)
Tesla is lowering the height of the main assembly hall to 29 feet from the original 50 feet, according to the filed documents. Bloomberg says the company confirms it will reduce the plant’s demand on the local water supply, which has been a concern of the local population.
The company began site prep for the complex in February. In its first phase, the facility will employ 3,000 people to make around 100,000 units per year. Output will be divided between the company’s Model 3 midsize sedan and the new Model Y crossover variant.
Tesla indicates the German plant could one day cost as much as $4.4 billion, be able to make 500,000 EVs per year and employ 8,000 people. Tesla hasn’t said when those goals might be reached.
This isn’t a new tactic for Tesla. The company also initially described its Shanghai plant, which opened in January, in terms of its eventual cost ($2 billion), ultimate capacity (about 500,000 cars) and the possibility of assembling its own batteries.
The Shanghai plant is likely to build fewer than 100,000 EVs this year, and Tesla hasn’t said when or if the facility will add battery production.
Tesla has projected that the price of its cars in China and Europe will drop by about $10,000 when local production gains traction in each market. Given the pace and timing of sales revivals in both regions, each facility seems well positioned.
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Paul Spadafora, chief engineer, Cadillac XT5, had, in his estimation, a fantastic opportunity as he and his team set about to develop Cadillac’s all-new midsize crossover vehicle for a number of reasons, one of which is the simple fact that this is one of the hottest segments going in the auto industry, so if you want to be in the game, you have to play hard against the likes of the Audi Q5 and the Mercedes GLE-Class.
Here's an overview of the study of assembly plant productivity that gets the undivided attention of all automakers: "The Harbour Report." Although the Big Three companies are getting better, they still have a way to go. But given the levels of competition, better won't be good enough for some plants, it seems.