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22-11-2023 | Automotive Manufacturing | dpa | News

Tesla Plans to Build Entry-Level Model in Grünheide

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This is a partly automated translation of this German article by dpa.

Tesla wants to produce the planned entry-level model for 25,000 euros at its European plant in Grünheide near Berlin. This was announced by Elon Musk during a visit to Grünheide.

The US electric car manufacturer Tesla is planning to produce the new entry-level model for 25,000 euros at its plant in Grünheide. Tesla boss Elon Musk announced this during a visit to Grünheide, according to participants. Several media outlets had previously reported on this. According to the participants, the announcement is seen as a commitment to the location in Brandenburg and an expression of the location's security. The car is already under development. Whether it will be built exclusively in Europe remains to be seen.

Tesla opened its plant in Grünheide last year. According to the company's latest figures, around 11,000 people are employed there. The target of 500,000 cars per year has not yet been reached, but there are already plans to expand the factory to a capacity of one million cars per year. The state of Brandenburg is still examining the environmental application for the first part of the expansion. Environmental associations and local residents have concerns, as part of the site is located in a water protection area.

Musk Promises Wage Increase

Musk also announced higher wages for his employees during his visit to Grünheide. Following an increase in wages of up to 6 % last year, they are set to rise by a further 4 % this year. The annual salaries of production employees will also be increased by 2,500 euros from February 2024. IG Metall had welcomed the planned wage increase. According to the union, however, Tesla's pay will still fall well short of the level customary in the German automotive industry.

(dpa)

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