Germany says Tesla will be eligible for state subsidies if it fulfills sustainability and battery efficiency requirements

Tesla had announced plans of expanding production to other regions of the world towards the end of last year. Two of the primary markets that Tesla would like to enter outside of the U.S were announced as China and Germany. In a recent statement, the economy minister of Germany commented in a newspaper interview that the country is willing to offer state subsidies to the U.S electric car manufacturer to set up its production house in Germany.

Peter Altmaier was in an interview with Welt am Sonntag when he cleared his stance that while the country is not willing to offer any privileges to the new market player (Tesla), it is also committed to making sure that the manufacturer doesn’t feel discriminated in any way either.

Emissions Regulations For The Automobile Industry Are Getting Stricter In Germany

Regulations concerning the use of older automobile technologies like petrol or diesel engines are getting stricter by the day in Germany. In an attempt to be prepared for the shifting trend and comply with the emissions rules, German authorities have already earmarked financial support that is directed at the domestic production of the battery cells for electric cars. The move, as per the government, is also expected to widen the job prospects in Germany in the manufacturing sector.

Altmaier also highlighted that just like any other auto manufacturer in Germany, Tesla will have to satisfy a few requirements concerning battery efficiency and sustainability in order to be eligible for state subsidies. He also emphasized the importance of research and development at such companies in order to be welcomed to the largest European economy.

Tesla’s Berlin Factory Will Domestically Manufacture Cars, Powertrains, And Batteries

Tesla had made the announcement in November that its first factory in Europe and a design center is expected to be established near Berlin. While the company highlighted plans for starting production in Germany with its Model Y (SUV), it was also publicized that powertrains and batteries will also be domestically produced in its Berlin factory.

Tesla’s performance in the past 15-20 months is unparalleled in the stock market. Tesla Inc. is currently exchanging hands at around $748 that marks an over 70% growth for its stock in 2020 so far. Earlier this week, the stock was seen trading as high as $887 per share that translated to over 100% growth in a little more than a month. 2020’s gain so far is significantly higher than that of 2019 in which the stock prices surged around 30%.