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Musk Opposed To Subsidies Pushes Tesla To Refuse State Aid For German Battery Plant

Musk Opposed To Subsidies Pushes Tesla To Refuse State Aid For German Battery Plant
Tesla announced on Friday that it was withdrawing its application for state aid to its battery factory planned near Berlin since the CEO Elon Musk said Tesla was against all government subsidies.
The European Union in January approved the plan, which included government assistance in the form of state aid to Tesla, BMW and others to boost the battery production for electric vehicles and assist the bloc in cut imports from the industry's leader China.
Tesla was anticipated be awarded 1.14 billion euros ($1.28 billion) in EU funds for its battery plant in Gruenheide Brandenburg under the agreement which is expected to be finalized likely to be made by the end the year.
"Tesla has informed the Federal Ministry of Economics and the Brandenburg Ministry of Economics... it is withdrawing its IPCEI application for state funding for the battery factory in Grünheide," a Tesla spokesperson said, referring to European subsidies allocated to so-called 'Important Projects of Common European Interest'.
The spokesperson said that the decision will have no impact on the plans for construction of the factory.
"It has always been Tesla’s view that all subsidies should be eliminated," Musk posted on Twitter in response to a tweet by another user after Tesla said it had withdrawn its funding application.
"But that must include the massive subsidies for oil & gas. For some reason, governments don’t want to do that...," Musk added, deviating from the subject of the factory grant.
Tesla itself has invested 5 billion euros into batteries, as per German government estimates of the economy ministry.
The the construction of a car manufacturing site adjacent to the battery plant that Tesla has started building with pre-approval permits pending final approval from the local government, has been moving forward in the past few weeks, the spokesperson of the federal economy ministry told.
The maker of electric vehicles also submitted a request in November of 2020 for regional financing from Brandenburg according to the website of the regional government.
A Brandenburg economic ministry spokesperson confirmed the application was not removed.
The amount Tesla requested isn't disclosed however, investments of more than 100 million euros usually provided with 6.8 percent on their total value. The site declares.
The most recent round of online consultations to people to voice their environmental concerns and other ones about the battery factory and car manufacturing plant ended last week. Tesla Chief Executive Officer Elon Musk has stated that the company will officially start production before the end of the year, and then accelerate production as soon as is possible.
Musk has made his displeasure with German laws and processes public in a letter sent to officials in April Germany's complicated planning requirements were at not in line with the urgency that is needed to combat climate change.

Christopher J. Mitchell

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