Report: Tesla withdraws its application for subsidies for German factory

San Francisco, Nov 28, : Tesla, the electric car maker owned by Elon Musk, has withdrawn a request for more than $1 billion in subsidies to Gigafactory Berlin for battery production.

According to a spokesperson, Tesla "continues to stick to its plans to build a battery factory in the Gigafactory BerlinBrandenburg, but will do so without state IPCEI funding." Musk, the CEO, made a comment suggesting that Tesla pulled the applications after the news broke.

He said that Tesla doesnt want any subsidies.The Financial Times looked into the program and found a clause that could be the reason for withdrawal.

According to FT, companies are not eligible for funds if they have deployed the same battery production at another facility.According to official documents, the EU requires that any site receiving funds must be the "first industrial use" of the technology.

This means that the batteries cannot be made at another Tesla plant.The publication suggested that Tesla could be denied funds if it continues to delay approval for Gigafactory Berlins production.

This is because it also has battery production at Gigafactory Texas, and Shanghai.Tesla already produces its battery cells in a pilot plant in Fremont, California.vc/sv #Tesla #German #factory.