The most valuable automaker in the world reportedly
The plant will produce up to 500,000 vehicles a year and plans to employ up to 12,000 workers. Capacity is similar to existing plants in California and Shanghai. Tesla (TSLA)
is building a plant in Austin, Texas, which will open soon.
The extra capacity should help Tesla’s expected growth. The automaker sold 936,000 vehicles in 2021, nearly double the 499,550 sold in 2020.
Electric vehicles make up 10% of vehicle sales in Europe and in December 2021 surpassed diesel vehicle sales in Western Europe for the first time. According to LMC Automotive, Volkswagen holds 24% of the European electric car market, while Tesla is behind 13%. Volkswagen sold
In 2021, 452,900 electric vehicles were sold worldwide, which is about half of Tesla’s production, but 8.9 million vehicles were sold in total.
Tesla sales soared despite chip shortages that have hampered automakers. The company reported record earnings in 2021.
CEO Elon Musk danced
and spoke at the event, calling the plant another step towards a sustainable energy future.
“Tesla will make sure this is a gem for the region, Germany, Europe and the world,” Musk said. “You must have hope for the future. This [climate] the problem will be solved and this plant is an important step in that direction. So have faith in the future.”
The event was attended and delivered by German Chancellor Olaf Scholz. He described the factory Twitter
as a way to become carbon neutral.
Tesla originally announced the plant in 2019. The company said that in 2022 it will focus on ramping up production and increasing production volumes at its existing plants.
However, the company will not deliver the long-awaited Cybertruck, Roadster or Semi this year. The automaker’s shares have fallen 21% this year as inflation, the ongoing pandemic, rising interest rates and the war in Ukraine have weighed on the markets.
Anna Kuban contributed to this report.