Elon Musk: Gigafactory 2 Will Be Located In Europe, Will Produce Batteries And Cars


Tesla Gigafactory: Image Credit: @jameslipman (Instagram)

Tesla Gigafactory 1, Image Credit: @jameslipman (Instagram)

According to Tesla CEO Elon Musk, Tesla is in the early stages of development related to a “Gigafactory 2” located in Europe. This all comes after, according to Musk, Tesla has embarked on its first substantial acquisition thus far.

Tesla will acquire a German automated manufacturing company known as Grohmann Engineering. Grohmann’s founder, Klaus Grohmann will make the move to Tesla and lead the newly formed, Tesla Advanced Automation Germany.

Inside Tesla's Gigafactory In Nevada

Inside Tesla’s Gigafactory In Nevada

The most surprising bit of information that Musk revealed was that this upcoming Gigafactory will not only produce batteries, but also vehicles. Over the past four years, Tesla has achieved a production ramp up of about 400 percent. It will need to do the same, if not more, inside of the next two years, in order to reach production goals of 500,000 vehicles a year.

Tesla Gigafactory model (via YT/AutomobilePropre)

Tesla Gigafactory model (via YT/AutomobilePropre)

The new Gigafactory concept will house the whole production process under one roof. Of course, this is only said to be the intention for Gigafactory 2. However, there is nothing to say that, if needed, the current Gigafactory can’t be molded into the same concept, or more Gigafactories in the future, could function this way. Especially if all goes well. It is not as if the current Gigafactory doesn’t have the space, or the ability to further expand (which has been the supposed plan all along).

Musk explained during a press call surrounding the acquisition of Grohmann:

“This is something that we plan on exploring quite seriously with different locations for very large scale Tesla vehicles, and battery and powertrain production; essentially an integrated Gigafactory 2.”

Musk further elaborated on Gigafactory 2 specifically being a Gigafactory, combined with a vehicle production facility. He also said that the new project will move forward once Tesla has time to assess Model 3 production. It is slated to begin sometime in the middle of next year, with high volume goals set for the end of 2017. Musk concluded:

“There’s no question that long-term Tesla will have at least one –, and maybe two or three – vehicle and battery factory locations in Europe.”

Tesla Gigafactory dimensions expressed as only Tesla can

Tesla Gigafactory dimensions expressed as only Tesla can

Tesla and Musk have been driving home the “machine that builds the machine” concept as of late, and the company believes that the Grohmann acquisition, coupled with the second “all-encompassing” Gigafactory in Europe, is the answer. Tesla reported (referring to a Gigafactory 2, automated by Grohmann) :

“Combined with our California and Michigan engineering facilities, as well as other locations to follow, we believe the result will yield exponential improvements in the speed and quality of production, while substantially reducing the capital expenditures required per vehicle.”

Sources: The Verge,  ElectrekTesla Motors,

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47 Comments on "Elon Musk: Gigafactory 2 Will Be Located In Europe, Will Produce Batteries And Cars"

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The footprint of the Gigafactory is ~5.5 million square feet – or more than 95 US football fields.

“Huge… tracts of land!” 😉

But those poor hamsters! Crammed in there like that… 😯

LMAO! I remember that very funny Monty Python skit!?

Think of how big of a HO scale or O scale or G train set you could put in there.

If I was a billionaire who had company with a giant building. I would make the top floor of the building one giant train set for conversation and maybe open it up to the public.

Now you’re trying to bring back the kid in me!?

Did Tesla actually “BUY” Grohmann ?

Yes. Pending regulatory approval which will come in early 2017.

in Eastern Europe….most likely.(educated,cheap labour…)

In Czech Republic and Hungary there are already labour shortages. Real wages will probably grow quite rapidly next few years.

Spain could be a better location than eastern Europe countries. A more advanced country, with infraestructures better by far, more stable, very good climate for solar energy in plant, near 50% energy production from green sources, a huge auxiliary industry with very good reputation, Spain is one of the biggest car builders since decades, and has a huge ammount of qualified and cheap workers.

Sweden, we make cars, and almost 100% clean power gridd

Okay, color me surprised. I expected Gigafactory 2, along with the second Tesla auto assembly plant, to be located in China.

I wonder why Tesla isn’t going to put its second set of large factories in the world’s fastest growing market for BEVs. Is Tesla perhaps worried about political instability in China?

Exactly my thoughts. They have little to gain by putting a factory in Europe before China.

It makes sense to build one in Europe, but it makes me feel like they are giving up on China.

Oh, well Hungary will be happy though. That is my best bet on where it will end up. (if not then my guesses would be Slovakia, Poland, Romania or Czech republic and in that order).
The sneaky outsider bet would be to actually put it in Germany. That would be a cocky “I’m Elon Musk and if I’m going to do premium cars to compete with the Germans then I’ll do it on their home turf if I want to”-move.

Too much of a risk to build in Germany. Government will do whatever is necessary to protect VW,merc and bmw.

I would love to see it being built in Pirmasens (Germany) but my outsider bet is Belgium.

Maybe gigafactory2 could have a different layout in order to convince Germany that it’s a good thing to have… I imagine a 25km long building having an autobahn like roof fitting in the missing section of autobahn 1 with teslas rolling out on a private lane. Now that would be cool. Maybe it can be called Teslabahn 1…

Tesla needs to wait a few more years until BMW, Merc. and VW are out of business, then they can build the gigafactory in Germany. The government will beg for it.

China wants a joint-venture with a Chinees majority. Musk is not ready for that.

Giga Factory 2 size will have to be compared to soccer fields.

Canadian Giga factory to hockey ice rinks.

Because football fields (real football, not the US handegg version) and hockey rinks are the European and Canadian equivalent to hamsters? 😉

By the way, the European hamster is endangered so Elon would make a good deed if he actually would breed 5 billion of it that would secure the survival of the species. 😛

Perfect timing. If Trump messes with Tesla the Tesla will make the batteries and cars across the pond.

Trump from what he is talking about wants to put a 35% import tax on stuff form other counties like Mexico.

Technically if Trump keeps his word on Taxing Ford and GM’s stuff and cars they bring in from Mexico.

If Tesla has a mostly US based production then technically Trump might end up making Ford and GM pay though the nose compared to Tesla.

I kind of think if Trump strips away the oil companies and coal companies limits on coal and oil production. We might see the free market itself regulate oil and coal pollution. This is due to the existing Tesla Giga Factory and this new one pumping out batteries and cars.

A bigger problem would be Turmp starting a tariff war with the outside world. As of Teslas and Volts weren’t expensive enough!

Considering the removal of mountain tops, acid lakes and oil spills, I’m kinda skeptical that these guy are gonna reign themselves in!?

You should read Silent Spring to see how the free market regulates pollution.

I wish the free market had a solution to this. 🙁

*crosses fingers* please be Ireland please be Ireland please be Ireland

Ireland? There is -2% chance of that happening.

Of 293 automobile assembly and engine production plants in Europe there is none in Ireland. There are good reasons for being that way and it’s more likely that Elon will put the next Gigafactory on Mars. 😛

*crosses fingers* please be Mars please be Mars please be Mars


How is that a reason not to?

The last rich american with big dreams to build fancy cars in Europe DID choose Northern Ireland !

This would make a lot of sense as this automatically resolves the EU import tarifs currently associated with the main production in the US and assembly of the remainder in the EU (NL). It’s to work around the tax using the current method, but it just wouldn’t scale up to the number of cars he’d want to get off the line. The logistics gets complicated too.

If you rely on mostly assembly using robots you become a lot more flexible in where to place the factory as the labour pricing becomes less of an issue. This must sound weird (different field) but you can still compete on price producing in NL if you automate the “unskilled” labour

Lichtenstein is the most probable location as it has enough spare space.

Doesn’t Lichtenstein fit inside Gigafactory?

Haha almost!

Ok, now I have it…



If it also must run on renewable energy exclusively, it will either be by the coast (wind) or in the South of Europe (sun), but someplace without earthquakes. I guess dams produce clean energy too, so maybe not too far from a river.

Portugal. Near 100% renewable electricity. Recent Tesla visit / talks with government there.

North Europe have very very clean electricity grids (norway and sweden particularly. (Sweden has the benefit of being in the EU here, and have many skilled auto manufacturing engineers and workers with (up until recently, (and soon again maybe) 2 car manufacturers) (technically 3 if you count koeningsegg.

It also needs to be on a large flat area, and I’ve been told the battery manufacturing is easier if it’s a fairly dry (not humid) area.

I’m thinking Spain.

My bet is Spain. Good infrastructure? Check. Inside the EU? Check. Has access to good seaports? Check. Plenty of sunlight for efficient energy usage at the Gigafactory? Check. No existing powerful auto industry to lobby against? Check. Availability of an educated labor pool plus attractive enough location to lure highly qualified staff? Check.

For EV production there will be more automation and less labor, that means countries with low capital and corporate taxes are more favorable, Estonia for example.

Another Euro point of view

…I would say, please deliver Model 3 no later than second quarter 2018 and at price point of no more than $45K and that would already be very well….

I wonder what European desert Gigafactory 2 will be build in?

Don’t need a decert if the powergrid is clean, (look at the nordic county’s.)


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