Tesla scales back German battery plans, won over by U.S. incentives

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Tesla scales back German battery plans, won over by U.S. incentives
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Tesla cars produced at the Brandenburg site would in the ‘near future’ contain batteries assembled locally, a spokesperson said

has begun assembling battery systems at its plant in Germany but will focus cell production in the United States in light of tax incentives under the Inflation Reduction Act , a spokesperson said on Wednesday.

Cars produced at the Brandenburg site would in the “near future” contain batteries assembled locally, the spokesperson added. EU leaders have expressed concern that local content requirements of much of the $369-billion of subsidies in the IRA will encourage companies to abandon Europe for the United States.

Brandenburg’s economy ministry said on Tuesday that Tesla was prioritizing its battery production plans in the United States, adding that to its knowledge the change of course would not impact the number of jobs available at the German site.

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