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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)

First Phase

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.

Staged Expansion

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.

What’s Next?

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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