Tesla pulls application for state aid for German battery plant

GigaBerlin render
Credit: Tesla

Tesla announced that it withdrew its application for state aid for its planned battery factory near Berlin. This move comes as Tesla CEO noted he no longer wants to accept any subsidies from national or state-level governments.

Musk noted in a tweet earlier today that ‘Tesla’s view is that all subsidies should be eliminated, but that must include the massive subsidies for oil and gas’.

Before backing out, Tesla expected to receive 1.14 billion Euros in European Union (EU) funding. Tesla had yet to receive confirmation, but the EU approved a plan to give state aid to multiple companies producing EV batteries. This funding was to help the European block to reduce battery imports from China.

Tesla spokespeople noted that they informed the federal ministry of economics and the Brandenburg Ministry of economics to withdraw its IPCEI application. In the same release, Tesla confirmed that this move would not affect construction plans.



However, the battery factory is not the only project that was going to receive funding in Brandenburg.

In November 2020, Tesla applied for regional funding from the Brandenburg Government for Giga Berlin. Tesla did not disclose how much they requested in terms of funding.

However, as per a spokesperson from the Brandenburg economy ministry, Tesla has yet to withdraw that application.

About Scott Nordlund 1176 Articles
Originally from the West Coast, Scott is an avid writer & EV enthusiast now living in Ottawa. He holds a MA in Political Science and once played professional football in the German Football League. Email scott@driveteslacanada.ca