Tesla has not received “a single penny” of government assistance for Giga Berlin: report
Tesla has not received “a single penny” of government assistance for Giga Berlin: report :- A new report from Germany says that Tesla Gigafactory Berlin might be doing something very interesting. So far, the government has not given the Model Y factory a single cent in aid.
Since almost a year ago, Giga Berlin has been making Tesla Model Y crossovers for the market. Even though the factory is still getting up to speed, it already has tens of thousands of employees. In a previous statement, Brandenburg Economic Minister Jorg Steinbach said that about 9,000 people work at the facility.
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According to the German newspaper BZ, the government has not given Giga Berlin a single cent since construction began. This is surprising because the German government usually helps companies build new factories. The federal and state governments sometimes pay up to 45% of the factory’s costs, the article said.
In fact, Tesla sent in a request for funding in November 2020, which is more than two years ago. But so far, Tesla hasn’t been successful, according to Brandenburg’s Ministry of Economic Affairs. “So far, “Tesla has not received a single cent of funding so far. A state aid notification procedure is currently underway in Brussels for Tesla’s application,” the Ministry said.
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The EU Commission would decide whether or not to approve funding for Tesla Giga Berlin and how much it could get.
The German newspaper says that the company itself is the main reason why the government doesn’t give Giga Berlin money. Tesla moves quickly, and it changes its plans when it sees better ones. This is true for the company’s cars, and as it turns out, it’s also true for its factories. Tesla was said to have planned to spend 1.1 billion euros at first, but the company “changed the application amount very often” and kept sending in new extensions for Giga Berlin.
The Ministry did say, though, that Tesla’s request for government funding is “ongoing.” It is also said that Tesla is about to get 6.8% of the funding for Giga Berlin. This means that the funding could reach 136 million euros if the construction costs reach 2 billion euros.
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