Elon Musk chooses Berlin as location for new Tesla factory

Elon Musk has announced that Tesla is to open its first European factory in Berlin as part of the carmakers expansion plans, in a blow to the UK auto industry and supply chain.

The so-called ‘Gigafactory’ will follow similar facilities based in Nevada, New York, and Shanghai.

Musk made the announcement at an awards ceremony in Germany.

He said: “Everyone knows that German engineering is outstanding and that’s part of the reason we are locating our Gigafactory Europe in Germany.”

“We are also going to create an engineering and design centre in Berlin.”

The facility will build batteries, powertrains, and vehicles, beginning with the Model Y.

Despite considering the UK as a location for the Gigafactory, Musk said that Brexit was a major factor in informing the decision. 

Speaking to AutoExpress magazine, he said: “Brexit uncertainty made it too risky to put a Gigafactory in the UK.”