Tesla prioritizes battery production in the US

US electric car maker Tesla continues to plan battery production in Germany, but has said it wants to prioritize its US locations for now due to the potential for huge subsidies.

The company explained the situation to its partners in the Grunheide district near Berlin on Friday, where it recently opened its new “mega-factory” for the production of cars as well as for the production of car batteries.

The company plans to increase battery production at its Texas plant faster than planned, as it could benefit from US President Joe Biden’s inflation-reduction law.

The company said that the German site can support this by providing spare parts and engineers, adding that in an ideal case, the two battery factories will increase their production as soon as possible.