• Karan

Facts & Importance of Giga Berlin

Updated: Dec 9, 2021

Introduction :

Stating that the success of tesla had an impact on the way we look at climate change or the automotive industry or just business, in general, is a complete understatement, they have revolutionized the way we even saw business and environmental impacts that it had. Continuing its success of streamlined production in the US, the company decided to replicate the same in Europe as it is one of the rapidly growing EV markets thanks to efforts made by environmental activists and recent EU policies. To do that Tesla has chosen Germany’s capital Berlin as its main production city and has started building one of the most ambitious and breathtaking architecture called Giga berlin, a gigafactory that will be the main production site for millions of teslas that will be sold in years to come. It actually started function but not in full capacity.

Design :

It was first officially announced in 2019 by the superstar CEO Elon Musk, at the Das Goldene Lenkrad award show. It will be the fourth gigafactory of Telsa following Giga Nevada, Giga New York, Giga Shanghai.

The factory is designed to assemble the model Y, building battery packs, batteries, and powertrains. This is a very crucial place for the whole EV market as the german Volkswagen's ID4 just saw success in Europe this means unlike in the US there will be meaningful competition for Tesla as it keeps the EV market very competitive and helps in attracting new customers with this competition. With this in mind, it is no surprise that Elon and his company have decided to build a 22,000 sq. Mts factory just 35 km from the center of Berlin. It is been very clear that Telsa will build a gigafactory somewhere in Europe even as far as back 2015 but it is only confirmed as berlin in 2017 by the company considering that tesla themselves do not want to destroy any forest land or agricultural land as it would go against the very moral of the company and things like these what makes Telsa a unique company.

The factory itself is no surprise as it resembles Elon Musk’s personality in every right, very minimal looking very future look and easily recognizable design of one boxy rectangle throughout the area. It looks as cool as a SpaceX’s Dragon capsule while in night and winter snow. It is enormous in size and even more enormous in its ambition.

Giga Berlin Facts :

  1. It is owned and operated by Tesla Motors as a part of their European market.

  2. It is just 35kms away from the center of Berlin, the capital of Germany.

  3. It has more than 8,000 employees.

  4. It manufactures batteries, battery packs and has an assembly line for Model Y.

  5. It is built between 2020 and 2021.

  6. It started operating in 2021.

  7. It is the Gigafactory number 4 built by Telsa.

  8. It is built in the site that is previously been planned to be a BMW manufacturing site around 2000.

  9. It is reported that Telsa approved the contract to buy the land for an estimated 41 million euros.

  10. It is estimated that Tesla will produce 500,000 vehicles in this newly built Gigafactory.

  11. It is expected that Telsa will plant new trees there to preserve diversity and the environment there.

  12. It is an area of undeveloped man-made forest of pine plantations.

  13. It is to be believed that the German government would be built another infrastructure project there even if it is not for tesla’s Giga berlin factory.

  14. It was reported that the site is covered with valley sand and it contains pollution with heavy metals.

  15. It is expected that the Giga Berlin will act as European Headquarters for Tesla.

  16. It is believed that the Giga Berlin will have a wastewater treatment plant with an estimated capacity of 252 m3/h.

  17. It is believed that the reason for choosing the Bradenburg state is that it has the highest sustainable energy production per citizen in Germany, with 7 bombs in total used for site clearing.

graffiti art in berlin
Berlin graffiti Art

Importance in terms of Business :

Well, you might ask why did Telsa choose Berlin for their Giga factory? They could easily choose Norway or Netherlands as they are the current biggest markets for the company in Europe and not to mention they are on the Atlantic coast so shipping from or to the US would be very easy right? The answer is quite easy, VOLKSWAGEN. Volkswagen is easily the biggest automobile manufacturer in Europe and the world next to Toyota but the number of brands that VW owns is what makes them such a fierce competitor for a company like a tesla.

Companies / Brands owned by Volkswagen :

  • Audi,

  • Bently,

  • Buggati,

  • Ducati,

  • Lamborghini,

  • MAN,

  • Porsche,

  • Scania,

  • SEAT and

  • Skoda.

VW group singlehandedly own 26% of the market share in Europe from January to May 2021 and it is no coincidence that Telsa has chosen Berlin over other places. Adding to that German engineers are the best engineers in the world. It is the fact whether you like it or not.

BMW’s headquarters is located in Munich, Germany. BMW also has their own fair share of market share as they also own multiple companies.

Companies owned by BMW

  • Rolls Royce,

  • MINI,

  • John Cooper Works ( MINI subsidiary ) and

  • BMW Motorrad.

The total market share of the BMW group is around 7% in 2020. But it is worth mentioning that BMW does not have a fully electric vehicle yet in the market but it is expected that i4 will be launched in 2022 to compete against model-3 Telsa's most successful car yet.

Conclusion :

It should be noted that there is nothing as ambitious as Telsa’s Gigafactories in the manufacturing world in terms of returns expected but it is what made Telsa as it is now. The gigafactories are extremely big in size but it is not enough and won’t be enough in the future either considering the projections for the next 5 years. So, if anyone wants to be wiser, it should be governments as the pandemics have shown us as much as we believe that fuel cars won’t be replaced soon, that soon is not far away either. The amount of sustainable energy company productions seldom seen decrease that at the starting 2 or 3 months as they are focused on the customers who are mostly the ones rather new buyers or fairly rich while this might be changed in forthcoming years, it might not be changing for next two years. This fact drives Tesla to build more and more gigafactories and keep expanding despite their never reported profit in their entire history. This is also with the case with Giga berlin, it might seem a bad idea to a short-term investor but the ones who followed tesla and their growth over the years will surely know that it is not for the short returns. These are the facts and importance of Giga Berlin. Thanks for reading, have a great day. This is your reporter Karan Dharmalingam.

References :

  • https://www.tesla .com/gigafactory

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