Photo: Google Maps screenshot
It may be one step at a time for Tesla right now, but that doesn't mean it can't have a short- and medium-term plan laid out already. After all, it's companies that don't do it that risk ending up like LeEco and its electric car ambitions.
With the Fremont plant and the almost completed Gigafactory in Nevada, Tesla's presence in the USA is fairly strong for a manufacturer of this size. The next logical step for Musk's company would be to expand overseas, and there are only two viable options that deserve attention: Europe or China.
China is a very big market and one that seems to support electric vehicles in the long run, but it's also riskier given the weird political and economical conditions. Europe, on the other hand, even though more expensive, is a lot more stable, and with a little investment in the Supercharger network, it could also grow exponentially as a market for Tesla.
Today's agreement on the acquisition of German engineering group Grohmann Engineering shows Tesla can appreciate the expertise available in this part of the world, but does it automatically mean the company plans to set a stronger foothold on the Old Continent? Apparently, yes.
During a press conference organized after the purchase announcement, Elon Musk was asked whether he considers establishing production capabilities as well in Europe. His answer was rather straightforward saying that Tesla will choose a location for its Gigafactory 2 next year and that the plant will produce both batteries and vehicles, Electrek reports.
“There’s no question that long-term Tesla will have at least one – and maybe two or three – vehicle and battery factory locations in Europe,” Musk elaborated on the promise, saying his company's European ambitions will begin once the Model 3 production starts, which should happen midway through 2017.
Musk did not reveal any possible locations, but today's investment in a German company should not be interpreted as a hint. Of course, central Europe provides the best technicians and engineers, plus Musk's view of a Gigafactory relies heavily on automation, so the more expensive workforce shouldn't be a problem.
At the other end of the scale are countries such as Portugal or even Spain where the climate is more similar to that in Nevada, meaning more sun for the factory's roof panels. Besides, which German engineer you think would say no to a relocation to sunny Spain? In the end, the decision will be carefully weighted and, have no doubt, the best one will be made.
China is a very big market and one that seems to support electric vehicles in the long run, but it's also riskier given the weird political and economical conditions. Europe, on the other hand, even though more expensive, is a lot more stable, and with a little investment in the Supercharger network, it could also grow exponentially as a market for Tesla.
Today's agreement on the acquisition of German engineering group Grohmann Engineering shows Tesla can appreciate the expertise available in this part of the world, but does it automatically mean the company plans to set a stronger foothold on the Old Continent? Apparently, yes.
During a press conference organized after the purchase announcement, Elon Musk was asked whether he considers establishing production capabilities as well in Europe. His answer was rather straightforward saying that Tesla will choose a location for its Gigafactory 2 next year and that the plant will produce both batteries and vehicles, Electrek reports.
“There’s no question that long-term Tesla will have at least one – and maybe two or three – vehicle and battery factory locations in Europe,” Musk elaborated on the promise, saying his company's European ambitions will begin once the Model 3 production starts, which should happen midway through 2017.
Musk did not reveal any possible locations, but today's investment in a German company should not be interpreted as a hint. Of course, central Europe provides the best technicians and engineers, plus Musk's view of a Gigafactory relies heavily on automation, so the more expensive workforce shouldn't be a problem.
At the other end of the scale are countries such as Portugal or even Spain where the climate is more similar to that in Nevada, meaning more sun for the factory's roof panels. Besides, which German engineer you think would say no to a relocation to sunny Spain? In the end, the decision will be carefully weighted and, have no doubt, the best one will be made.
Google News