American electric vehicle giant Tesla reportedly boosted Brandenburg’s economy by a significant margin in the first six months of the year.
According to Tesmanian, Tesla’s footprint enabled the East German state to reach the top of the country’s economic growth rankings.
German states with the highest GDP (Jan – June)
Brandenburg recorded the highest economic growth in Germany from January to June 2023. According to the government statistics office’s data released yesterday, it enjoyed a 6% increase in its GDP (Gross Domestic Product) partly due to its car-making industry.
However, Rbb24 claims that the state’s GDP growth was more than 14% if the count disregards inflation.
Hamburg followed with a 1.7% growth in its GDP, slightly ahead of Lower Saxony’s 0.9% improvement.
Rhineland-Palatinate lagged behind with a 5.4% drop in its GDP in H1 2023, while Saxony-Anhalt suffered a 3.2% decline.
Brandenburg’s advancement is unsurprising, considering the multiple production sites it houses. Nonetheless, the Musk-led company is believed to be the largest contributor to the state’s economic growth.
“Car production has given the economy a big boost. This is the main reason why Brandenburg is so much above the national average.”
Statistics expert Benjamin Gampfer told Reuters
Tesla’s role
For context, Tesla initially penetrated the German industry in 2019. Since then, the state has gained significant benefits from the automaker’s local operations, such as job opportunities and revenue.
Tesla operates an electric vehicle plant near Grünheide with a weekly production capacity of 5,000 units.
Gigafactory Berlin also generated 11,000+ jobs for its operations, advancing as the biggest private employer in the state.
Berlin-Brandenburg Business Association (UVB) Deputy Managing Director Alexander Schirp asserted that the state recorded more than 13% growth in its manufacturing industry’s gross value in 2022, largely due to e-mobility investments.
“Yes, Tesla has a role to play in Brandenburg. A core of growth is being created here that will bring momentum and new prosperity to the entire region.”
Statistics expert Benjamin Gampfer told Reuters
Expansion plans
Teslarati noted that Tesla is planning to further boost its vehicle and battery production operations in Brandenburg by expanding its factory.
According to the report, Tesla is still waiting for the government’s green light. However, the company expects the expansion project to raise the Gigafactory’s annual production to 1 million EVs.
Moreover, it would also boost its battery manufacturing capacity by twofold from just 50 GWh to 100 GWh.
See Also:
- Tesla to begin Phase 2 development at Giga Berlin to hit 1 million annual capacity
- Tesla Gigafactory Berlin finally hits 5,000 unit/week target
- Tesla unveils “Godzilla” robot and newest EV production line in Giga Berlin
- Tesla to expand Gigafactory Berlin after a 100-acre land acquisition
- Tesla, Alfa Romeo, MG among the top in Germany’s May sales
Despite Tesla’s remarkable expansion plans in Brandenburg, many oppositions remain committed to stopping the project. The Strausberg-Erkner Water Association (WSE) continues to protest against Tesla’s expansion over water usage concerns.
Nonetheless, Tesla is dedicated to pursuing the project as it is crucial for its production ramp-up efforts.
