Tesla will reportedly receive some extensive support for a new factory in Germany. New reports suggest the American company will net up to $1.2 billion in state funding from the German government. The stipend is part of a broader European Union deal to support battery production.
Business Insider reports the deal is part of the EU’s new European Battery Innovation project. The project includes up to 40 country with the intent of issuing about $3.5 billion in funding. The funding is supposed to go to firms who will build batteries for electric vehicles in EU nations, reducing reliance on Chinese production.
While this news is centered on an American company, sources have stated the project aims to fund domestic firms as well. BMW is reportedly a potential recipient of funding.
Officially the German government is not confirming any economic support for Tesla. Insiders say the deal is complete though. Most of the $1.2 billion is coming from the German state and the state of Brandenburg. The factory will be near the capital city, Berlin.
Of course, this funding is allegedly going to Tesla just as the company’s stock hits record highs. Telsa CEO Elon Musk was also recently named the most wealthy person in the world.
Tesla recently began ramping up production at a new factory in Shanghai, China. The company is also planning a new factory near Austin, Texas.