US electric car manufacturer Tesla is putting its project to build a battery factory in Germany on hold, following promises by Washington of tax eases and subsidies for the auto industry, Wall Street Journal reports, based on information from insiders.
The US government announced in August that it would provide tax breaks for automakers when electric car batteries are manufactured and assembled in the US. The law also provides a subsidy of up to USD 7,500 for the purchase of an electric vehicle, provided the final assembly of the vehicle is done in the United States.
Tesla had planned to build a battery factory in Germany, where it already has an auto factory near Berlin, with the ability to export some cars to the U.S. However, the carmaker is now studying the possible consequences of the new legislation in the U.S. and is putting its project in Germany on hold for the time being.