Gigafactory: Tesla stocks are fundamentally weaker: Tesla waives state support for battery production | newsletter

This was announced by the Federal Ministry of Economy and Tesla on Friday at the request of the German News Agency.

Tesla has informed the Federal Ministry of Economy and the Ministry of Economy in Brandenburg that it does not wish to pursue participation in the second large European project to produce battery cells (EuBatIn), the car manufacturer said. That is why the company withdrew the application for government funding for the IPCEI (Transnational Project of Common European Interest) for the battery plant in Grünheide. “However, Tesla is adhering to its plans for its battery and recycling plant at Gigafactory Berlin-Brandenburg.”

According to the Federal Ministry of Economy, this shows “that Germany is an attractive investment location and that foreign investors are investing in Germany and Brandenburg”. and: “Government funds that Tesla did not use is now available for other projects.” Assistance for the project in Grünheide has been approved by the European Union Commission.

The Brandenburg Department of Economic Affairs has stated that Tesla’s decision to build its state-of-the-art battery cell plant in Brandenburg will result in additional added value with jobs and structural developments and will be a win-win for the state.

Not only does Tesla want to build a car factory near Berlin, it also wants to build new types of batteries. Tesla boss Elon Musk wants to start production of Europe’s first car factory this year. But the approval of the state of Brandenburg is still pending. Another online discussion by critics of the project ended on Monday.

Ahead of the trading session, Nasdaq-listed Tesla stock lost 3.08 percent to $1,081.62.

/ hoe / DP / eas

Berlin / Potsdam (dpa-AFX)