- Photo by Vlad Tchompalov on Unsplash

Elon Musk, CEO of Tesla Motors, has confirmed plans to build the company's first major European plant in Berlin, Germany, thus scrapping his original plan of using the UK as a base for Europe.

Berlin's Gigafactory – this is what Tesla calls its factories – is going to be an engineering and design centre for European production, which is set to begin in 2021, and it is going to be located near Berlin airport. The company already has plans for a $2bn factory in Shanghai, where the Model 3 and the Model Y are going to be built, as they face increasingly stronger competition in the EV industry.

Photo by Bram Van Oost on Unsplash

Photo by Bram Van Oost on Unsplash

Tesla already owns an assembly site in the Netherlands, which is their main office in Europe at the moment, but said the Gigafactory in Berlin is going to be much bigger than that. Musk also said that fear over the potential consequences of Brexit in the upcoming months played a crucial role in the selection process. Musk was quoted saying that "Brexit [uncertainty] made it too risky to put a Gigafactory in the UK."

Industry analysis shows that Germany, Spain, France and Italy are going to become major production hubs for electric vehicles over the next few years.

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