According to Jiemian News, the source said that Tesla will abandon its 1.14 billion euros of German state assistance for the production of batteries at its German factory, because the company has decided to try mass production of new batteries in Texas, the United States.
Tesla said last year that after confirming that it can produce 4680 battery packs on a pilot assembly line in Fremont, California, the company plans to mass-produce it at a factory outside Berlin. If Tesla chooses to do so, as part of the EU’s "Important Projects of Common European Interest" initiative, Tesla will be eligible to receive public funding from Germany.
According to official documents, this aid requires that the site of the plant should be the "first industrial deployment" of the technology owned by the applicant, which means that the battery cannot be produced in another Tesla plant first. However, as the construction of the factory faces German review, its opening time will be postponed for several months.
According to the source, Tesla has now changed its direction and will be the first to produce 4680 batteries at its plant under construction in Austin, Texas, so it is no longer eligible for these funds.
The German Ministry of Economic Affairs subsequently confirmed the news. The spokesperson said that Tesla notified the German government that it would abandon this support plan.
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