Tesla will start production in Germany next month: Report

Tesla Inc will start production at its Germany factory from December. The EV major will start the manufacturing process with as many as 30,000 electric vehicles, Automobilwoche reported.

Tesla was about to start production in July, but it got delayed because the EV company did not receive environmental clearance. The report stated that the local regulators are expected to grant the required permits within days according to the publication's report.

It also stated that five units of the Tesla Model Y have already been completed at the gigafactory located near Berlin, however not on the production line. It added that the serial production will begin with 1,000 electric vehicles per week and then it will gradually increase its numbers.

It has been reported Tesla has also withdrawn its application for state funding for this factory, as said by a spokesperson from the economy ministry. “Tesla continues to stick to its plans for the battery factory in the Gigafactory Berlin-Brandenburg, but will do without state IPCEI funding," the spokesperson added. The European Union in January had approved a plan that included giving state help to Tesla, BMW and others in order to support the production of electric vehicle batteries with an aim to reduce imports from China. According to the plan, Tesla was expected to get about 1.14 billion euros ($1.28 billion). The final decision was due to come by the end of the year.

An earlier report stated that Tesla has plans to invest around $188 million in its Shanghai factory to update factory equipment as the plant is nearing wearing out its current capacity by the end of 2021. The annual production capacity of the factory is 4,50,000 vehicles.