Tesla Scales Back German Battery Plans, Won Over by US Incentives

Tesla Scales Back German Battery Plans, Won Over by US Incentives
Model Y cars during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, on March 22, 2022. Patrick Pleul/Pool via Reuters
Reuters
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BERLIN—Tesla Inc. has begun assembling batteries in Germany but will focus cell production in the United States in light of Inflation Reduction Act incentives, the company said, making it one of the first firms to declare a strategy shift prompted by the package.

The U.S. electric-vehicle maker is also preparing to produce cell components such as electrodes, some of which will be sent from its site in Gruenheide in the state of Brandenburg, to the United States, Tesla said on Wednesday.