Elon Musk: Berlin 'gigafactory' will build Teslas starting with the Model Y

A customer is going for a test drive in Tesla’s Xintiandi showroom in Shanghai

A customer is going for a test drive in Tesla’s Xintiandi showroom in Shanghai

On Tuesday evening, technology entrepreneur, investor, and engineer Musk revealed during a ceremony at Germany's Golden Steering Wheel awards that the new "Gigafactory" for electric cars and batteries would be "in the Berlin area".

"Brexit made it too risky to put a Gigafactory in the UK", Musk was quoted as saying.

Brandenburg is in a state of "great euphoria", over Elon Musk's announcement that he has picked the German state that surrounds Berlin as the place to build his first European plant, local politician Erik Giese said on Wednesday.

Speculation has been ongoing as to where the Fremont, California-headquartered auto, solar and battery energy storage technologies company would put its next gigawatt-scale manufacturing facility, following the first plant, in Nevada, and the apparently stalled solar production site in Buffalo, New York.

We've asked Tesla for comment on how close it is to that goal.

The focus on Germany comes amid rising appetite for electric cars in Europe.

"A big reason of joy, recognition and confidence!" he wrote on Twitter.

According to Musk, the factory is to be built near the new BER airport, which has been sitting empty for years, unable to open due to endless problems- the e-car pioneer said he hoped the factory would be faster to be ready than the airport.

Aerial photo taken on shows the tesla gigafactory at night in Shanghai, China.

The US electric carmaker also plans to locate a research and development base in the German capital.

Tesla is also planning to create an engineering and design center in Berlin, Musk added.

Tesla previously said it aimed to start production in Europe in 2021. "We have cleared initial milestones toward our manufacturing license and are working toward finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai", the company said.

However, Berlin-based automotive analyst Matthias Schmidt told Yahoo Finance UK: "Tesla may face more of a challenge in opening a facility in Germany than China".

Germany, home to some of the world's biggest automakers, has been overtaken by the United States, China and some European neighbors in the adoption of electric vehicles. Tesla surprised investors by posting a profit of $143m (€128m) in the third quarter despite a fall in revenue.

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