Tesla is ramping up its entry in the European market, and the automaker is reportedly going ahead with the construction of the Gigafactory Berlin while waiting for the final approval coming from the German government. The project is now on the third step, but Tesla is said ready to implement phase pending the green light from regulators.
The latest update from Giga Berlin indicated that the project site has been cleared of pine forest. Out of the 300 hectares spanning the site, 90 hectares have been prepared for the manufacturing complex's construction.
According to Teslarati, the excavation work has been largely completed and foundations have been built. Internet connection will be provided to site workers via satellite dishes, and the access is deemed important by Tesla for project managers and engineers to continue their collaboration.
When the factory becomes operational, Tesla said the annual output for Europe is set at 500,000 units. The company said one of the first vehicles to roll out of Giga Berlin is the Model Y.
The target for this to happen is July 2021, and Tesla is projecting that to realize the goal, things should moving at the soonest.
Tesla has already stated that Giga Berlin will fire up the company's European operations, which explains the rush on the company's side. The factory will serve as the gateway for Tesla electric vehicles to start selling at a more competitive price.
Electrek reported that Tesla's game plan is to introduce its line of EVs in the region by manufacturing the units locally. This will significantly cut the cost of production and allow Tesla to sell the EVs at price points that are near-identical to the U.S. market.
However, the blueprint that Tesla follows on the project has been plagued by delays, and the coronavirus pandemic only complicated matters for the automaker.
Further delays will only hurt Tesla's European push and foremost to be affected is the plan to get the Model Y to the continent soon. But the company has already indicated that the all-electric crossover will be brought to the market if produced and assembled on Giga Berlin.
That is why the company is going ahead with the construction of the factory but doing so at its own risk without the official signal from the German government.
Nonetheless, Tesla's bullish attitude on the project should indicate that the approval it's seeking is forthcoming. As noted by the same Electrek report, the company has the support of local officials where the Giga Berlin will rise. It should follow that the national government will affirm the initiative made from the local level.
Giga Berlin will serve as Tesla's entry to its third continent as the company already has a manufacturing presence in North America and Asia.