Elon Musk links Tesla Model Y release in Europe to Gigafactory Berlin

Elon Musk commented on something Tesla has hinted before: the Model Y coming to Europe only when it can be produced locally at Gigafactory Berlin.

Something interesting is happening with the launch of Model Y.

Tesla’s latest vehicle is coming at a time when the company has more than one vehicle production facility, and it’s starting to have more choices for new vehicle production allocation, like most other established automakers.

Tesla previously produced all its electric cars in Fremont factory in California and exported them all over the world.

Now it’s producing some Model 3 vehicles in China at Gigafactory Shanghai for the local market, and the company started working on an expansion of the factory to produce Model Y vehicles for the local market starting next year.

When it was announced, Tesla made it sound like even though they were starting Model Y production in Fremont, the new electric SUV wouldn’t come to China until it was locally produced at Gigafactory Shanghai.

Then Tesla announced a new factory to produce vehicles near Berlin, and Musk said that the factory would first produce the Model Y for local European markets.

Many speculated that it means Model Y deliveries will only come to Europe once Tesla can produce the vehicle at Gigafactory Berlin.

Now Musk officially links the start of Model Y deliveries in Europe to the start of Model Y production at the factory:

In about a year. Would come from Giga Berlin.

— Elon Musk (@elonmusk) April 9, 2020

While the person asking the question was only talking about Switzerland, it’s safe to assume that it’s going to be the same for most European markets.

The Model Y started being delivered in the US in March, and Tesla has yet to elaborate on market expansions in other countries.

For new Tesla vehicle launches, the automaker generally expands to Canada first a few months after deliveries start in the US, and then Europe about a year later.

Electrek’s Take

We’ve talked about that before on the podcast and it’s something I find really interesting.

If accurate, the Model Y would become Tesla’s first vehicle produced on three continents to serve each market with locally made electric vehicles.

That should do wonders for Tesla’s logistics costs and also stabilize its vehicle deliveries since Fremont will not have to do batches of Model Y for each market.

It also implies that Tesla thinks it can sell every Model Y it makes in Fremont factory without shipping them to Europe or China.

Based on Tesla’s previous vehicle launches, it would likely mean that all of Fremont factory’s Model Y production for the first year is going to go to the US and Canada.

Of course, they thought that before the recent pandemic and the economic downturn.

We’ll see how this plays out.