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Tesla Motors Inc (TSLA) Lobbies Government For German Battery Plant

Tesla Motors Inc (NASDAQ:TSLA)

Tesla Motors Inc is planning to build a battery factory in Germany.  The company is currently in talks with the German government, said the country’s Economy Minister Sigmar Gabriel on Tuesday. Gabriel, at an event in Rastatt at a Mercedes-Benz car factory, said Elon Musk, has made contact with German officials to seek support for the facility.

Tesla Motors Inc (NASDAQ:TSLA)
Tesla Motors Inc Model S factory line, Fremont

German factory to help Tesla against rivals

Gabriel shared no more details on the proposed plant, but said the talks are going on between them and Tesla CEO about a possible plant, and that Musk might want public funds.

Tesla Motors Inc is competing with luxury-car leader BMW and Mercedes parent Daimler AG, which makes batteries in eastern Germany and plans of expanding production. With a battery factory in Germany, Tesla will get a new front in its fight against these rivals.

Tesla Motors’ massive battery plant, Gigafactory, is under construction outside of Reno, Nevada, and opening of a new plant suggests aggressive expansion plans from the US firm. Tesla sees Germany a key market for its household battery-storage systems.

In an email to Bloomberg, a Tesla Motors spokeswoman based in Munich said the firm has “no current plans to build a battery factory in Germany.”

Gigafactory- second largest after Boeing

Meanwhile, Fast Company, who got an exclusive look at Tesla’s Gigafactory in Nevada, are very impressed with it. “When the Gigafactory is finished, it will be only slightly smaller than Boeing’s Everett, Wash., plant, which is the world’s largest building by volume,” Fast Company said in a report.

It will be the second-largest, and could grow bigger in future, the report said hinting on Musk’s plan. Speaking to Fast Company, Musk said it will certainly “blow your mind. You see it in person and then realize, F*ck, this is big.”

Gigafactory will cost around $5bn, the report said. The factory will cover about 3,000 acres, and the main factory will be spread over 13.6m sq/ft. The Tesla Motors Inc factory will get complete by 2020, and will make batteries for both cars and homes, and employ 6,500 workers.

On Tuesday, Tesla shares closed down 0.14% at $214. Year to date, the stock is down almost 4% while in the last one-month, it is down almost 6%. The stock has a 52-week high of $286.65 and a 52-week low of $181.40.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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