Tesla Hits Brakes on Slated Electric Battery Plant in Germany

16-09-22

According to the Wall Street Journal, Tesla has put on hold its intentions to produce battery cells in Germany in order to be eligible for tax advantages offered to American producers of electric vehicles (EVs) and batteries.

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The Texas-based electric vehicle manufacturer would be eligible for tax incentives under the recently approved Inflation Reduction Act if it produces batteries locally (IRA).

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The IRA, which was signed into law in August, establishes sourcing specifications for government EV subsidies intended to encourage manufacturers to use EV batteries made in North America 

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Additionally, purchasers of EVs are eligible for a $7,500 tax credit, provided that the final assembly of the vehicle is completed domestically.

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In addition to the current vehicle manufacturing close to Berlin, Tesla had originally intended to construct a battery facility in Germany, with the prospect of exporting some of the batteries to the US.

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According to sources for the Wall Street Journal, Elon Musk's firm is delaying its project in Germany while it studies the effects of the new US law. 

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A request for comment from AFP did not receive a response right away from Tesla.

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