- Tesla may build a Gigafactory in Germany, CEO Elon Musk said on Tuesday.
- Tesla has a Gigafactory in Sparks, Nevada, that makes batteries and powertrains for its vehicles.
- Future Gigafactories will house battery, powertrain, and vehicle production.
- During the company's annual shareholder meeting on June 4, Musk discussed Tesla's plans to build a Gigafactory in Shanghai, China.
Tesla may build a Gigafactory in Germany, CEO Elon Musk said on Tuesday.
Musk said on Twitter that Germany is one of Tesla's preferred locations for a European Gigafactory. He said the company could possibly locate the factory on the border of Germany and France.
Tesla's European headquarters and an assembly plant are located in the Netherlands. Musk said on Twitter that Tesla will not move its European headquarters.
Tesla has a Gigafactory in Sparks, Nevada, that makes batteries and powertrains for its vehicles. Future Gigafactories will house battery, powertrain, and vehicle production.
During the company's annual shareholder meeting on June 4, Musk discussed Tesla's plans to build a Gigafactory in Shanghai, China. Musk said Tesla will announce details about the Chinese Gigafactory as soon as next month.
Tesla intends to ultimately build between 10 to 12 Gigafactories, Musk said, which is part of the company's plan to reduce production costs for its vehicles.
Musk also discussed plans for the Nevada Gigafactory, which he said is about one-third of its planned size and "will be, by far, the biggest building in the world."
Tesla will continue building the Nevada Gigafactory for at least four more years, Musk said.
The company began building the Nevada Gigafactory in 2014 amid concerns that the global supply of batteries would not be sufficient to meet the demand for its Model 3 sedan, which starts at $35,000 and is Tesla's first mass-market vehicle. Since its founding, Tesla has made an effort to decrease its reliance on third-party suppliers and produce an increasing percentage of its vehicles in-house.
Germany is a leading choice for Europe. Perhaps on the German-French border makes sense, near the Benelux countries— Elon Musk (@elonmusk) June 19, 2018
Bottlenecks at the Nevada Gigafactory have contributed to production delays that have slowed the Model 3's rollout. On June 4, Business Insider reported that Tesla expects up to 40% of the raw materials used in its battery and powertrain production process to be reworked or scrapped before being sent to the Fremont, California, factory where it assembles its vehicles. Tesla has spent nearly $150 million on scrap materials this year, according to internal estimates reviewed by Business Insider, a figure the company disputed.
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