California-based and electric car manufacturer Tesla has opened its new factory in Europe. The factory, called the Gigafactory , opened in Brandenburg, Berlin, Germany, and cost $5.5 billion . The factory’s target is to produce 54 thousand vehicles in 2022, 280 thousand vehicles in 2023 and 500 thousand vehicles in 2025.
Tesla’s goal was to open the Gigafactory Berlin 8 months earlier, but it didn’t happen, so it had to divert some of its planned production to the Shanghai factory. Elon Musk, on the other hand, said that localizing production on one continent would make “a big difference in capital efficiency”.
The newly established factory aims to produce 500,000 cars per year when it ramps up production by 2025. In this regard, Volkswagen sold approximately 450 thousand electric cars globally in 2021. Volkswagen is the European leader in the electric vehicle market, with a 25 percent market share versus Tesla’s 13 percent. Tesla believes its Gigafactory in Germany will significantly change these rates.
