Tesla currently produces its electric cars solely in California and by the end of this year, it should also start production in China. The Tesla Model Y will be produced in California or Nevada (the base versions will be produced in China too).

According to latest news, Tesla is considering production in Germany. We assume that the plan is to build the European gigafactory (for cars and batteries) somewhere close to the biggest markets (richer countries in Western Europe), where there is a skilled workforce (usually manufacturers are seeking cheaper labor in Central Europe).

Major Tesla production facilities:

  • Tesla Factory in Fremont, California (all types co vehicles)
  • Tesla Gigafactory 1 in Sparks, Nevada (battery cells, motors, ESS)
  • Tesla Gigafactory 2 in Buffalo, New York (solar products)
  • Tesla Gigafactory 3 (under construction) in Shanghai, China (cars and other things beside lithium-ion cells)
  • Tesla final assembly facility for Model S/Model X in Tilburg, Netherlands
  • Tesla Grohmann Automation in Prüm, Germany

There are plenty of countries that would be willing to attract Tesla - not only Germany.

The questions are what would be produced in Europe (one particular model or various models) and what are Tesla's capabilities to raise more funding for such an expensive expansion into another market?

If sales in Europe exceed 100,000 per year with the prospect of growth, the European facility would be handy. It could also help to relieve any constraints at the Tesla Factory in California.

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