The first batch of 30 Model Y automobiles built at Tesla's USD 5.5 billion worth Gruenheide plant has reportedly been delivered to its clients. The new unit marks the inauguration of Tesla’s first manufacturing hub on the European continent.
The ceremony was attended by Tesla CEO, Elon Musk and German Chancellor, Olaf Scholz. For those unaware, Musk had wanted to start the facility eight months ago but had to overcome several delays caused by the country’s notorious bureaucracy.
Local officials believe that the plant has been approved relatively swiftly for a project of this size.
The Gigafactory is anticipated to employ 12,000 people and produce 500,000 cars per year at full capacity, which is higher than the 450,000 battery-electric vehicles sold globally by its arch-rival Volkswagen in 2021. It is also expected to produce 50-gigawatt hours of battery power, outstripping all other plants in Germany.
The model Y performance trim, which costs USD 70,612 (EUR 63,990), and has a range of up to 514 km, will be delivered to these consumers. Tesla also stated that the company will start delivering on fresh production orders in April.
Notably, Volkswagen currently has a 25% market share in Europe's electric vehicle market, compared to Tesla's 13 percent. Musk has cautioned that ramping up production will take longer than the plant's 2-year construction period.
Volkswagen is planning a new USD 2.207 billion EV facility beside its Wolfsburg manufacturing unit and six battery plants across Europe, after receiving orders for 95,000 battery electric vehicles in Europe this year.
However, its schedule lags Tesla's, with the first electric vehicle factory set to debut in 2026 and the first battery plant in 2023. On March 4, municipal authorities gave Tesla the green light to begin production, but with several conditions on water usage and pollution management.
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