BERLIN — Tesla nonetheless plans to provide batteries in Germany, however the firm is prioritizing the U.S. due to the prospect of tax incentives.

Tesla has paused plans for a 50 gigawatt-hour battery manufacturing facility subsequent to its automobile meeting plant in Gruenheide, close to Berlin, whereas it appears into tapping into tax credit that will probably be provided to automakers who produce EV elements, reminiscent of batteries, in North America, the Wall Avenue Journal reported earlier this month.

The U.S. electric-car maker has informed native politicians that it nonetheless intends to open a battery manufacturing facility in Gruenheide however it now goals to ramp up battery manufacturing in Austin, Texas, sooner than deliberate.

This might be supported by utilizing German engineers and German-built elements, Automotive Information Europe sister publication Automobilwoche reported.

Tesla confirmed that its plans to open a battery plant in Gruenheide are unchanged, the district’s mayor, Arne Cristiani, informed Reuters on Monday.

“Tesla put every little thing reported within the American newspaper into perspective. The plant remains to be being constructed,” Cristiani mentioned, referring to the Journal report.

Reuters contributed to this report