Tesla CEO Elon Musk resumed Twitter users’ news about Tesla’s withdrawal of the subsidy application for the German factory, saying that Tesla has always believed that all subsidies should be cancelled. Musk said that Tesla has always believed that all subsidies should be eliminated, but this must include huge subsidies for oil and gas. But for some reason, the government does not want to do this.
According to reports, a spokesperson for the German Ministry of Economic Affairs said today that Tesla has withdrawn its application for subsidies for its battery factory in Brandenburg, a suburb of Berlin. The spokesperson said: Tesla will continue to adhere to its plan to build a battery factory at the Gigafactory in Brandenburg, but will no longer apply for state subsidies.
It has always been Tesla’s view that all subsidies should be eliminated, but that must include the massive subsidies for oil & gas.
For some reason, governments don’t want to do that …
— Elon Musk (@elonmusk) November 26, 2021
In January of this year, the European Union approved a 2.9 billion euros (about 3.5 billion US dollars) assistance program, which includes state assistance to companies such as Tesla and BMW to support local production of electric car batteries. According to the plan, Tesla is expected to receive 1.14 billion euros (about 1.28 billion US dollars) in subsidies. The exact amount was originally planned to be made before the end of this year, but now, Tesla has withdrawn the application.
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According to information on the Brandenburg government website, Tesla also applied for local funding subsidies from Brandenburg in November 2020. A spokesperson for the Brandenburg Ministry of Economic Affairs stated that the application has not been withdrawn. The amount of subsidy applied by Tesla is unknown, but according to regulations, investments worth more than 100 million euros will usually receive a subsidy of 6.8%. According to estimates by the German Ministry of Economic Affairs, Tesla will invest 5 billion euros in battery factories.