Tesla: No battery production in Grünheide after all?

In August, U.S. President Joe Biden signed a law that allows electric vehicle manufacturers to benefit from billions in tax incentives if they produce in the United States. Buyers of electric vehicles are granted a tax credit equivalent to 7,500 euros per purchased electric vehicle, provided the car batteries meet certain production and supply chain criteria. The battery production is to be subsidized with 35 euros per kWh, and the module assembly of these cells with 10 euros.

Tesla apparently wants to prioritize projects in the USA first, according to the WSJ report. Additionally, the sharply increased energy prices in Europe have prompted the American car manufacturer to initially use allocated resources in the USA. Cell production machines that were originally planned for use in the Grünheide plant are already on their way to the United States. At the German plant, the buildings intended for battery production are already ready for occupancy.

Originally, the Model Y from Grünheide was supposed to be built with the batteries manufactured there from the start of production. Since the local battery production is not yet operational, the vehicles are currently being equipped with battery packs delivered from China. The magazine "Teslamag" reported that it actually no longer makes sense to set up battery production in Germany at all. Purely financially, with the new subsidy in the USA, even battery production in the USA with subsequent transport to Germany could be more profitable.