Tesla Builds Electric Car Factory In Germany Worth IDR 71.9 Trillion

JAKARTA - Tesla finally got the "green light" to build a Gigafactory factory in Brandenburg, Germany, with an investment of US$5.5 billion (Rp71.9 trillion).

According to Reuters on Saturday, Tesla chairman Elon Musk said the construction of a Gigafactory in Europe was essential to put pressure on rival Volkswagen, which has also started to aggressively introduce electric cars.

Based on the data, Volkswagen leads the sales of electric cars in Europe with a market share of 25 percent, while Tesla is only 13 percent.

Brandenburg Governor Dietmar Woidke said Tesla's move was a "big step into the future". He added that the Tesla factory would be a major industry and technology driver for Germany and the European region.

The factory is estimated to absorb 12,000 workers, of which 2,600 people have started work this month.

As for spare parts supply, Tesla is trying to find local German suppliers to minimize waiting time and logistics costs.

However, there are a number of conditions that must be met by Tesla to build a factory in Brandenburg, including the use of water according to environmental standards and control of air pollution.

The Brandenburg environmental authority will closely monitor the requirements at Tesla's factories over the next two weeks.

If all of them meet the requirements, Tesla's Brandenburg factory will become a giant factory in Europe with a production capacity of 500,000 electric cars annually.