Musk to earn German support for at least $1.2B

Tesla Inc. is scheduled to receive at least EUR 1 billion ($1.2 billion) of public funding from Germany to set up a battery cell development plant near Berlin, Business Insider posted.

At the end of the week, the European Union allowed a proposal that includes state assistance to Tesla, BMW and others to help produce electric car batteries and to help the bloc limit imports from China’s trade leader.

The acceptance by the EU of the EUR 2.9 billion European Battery Innovation Mission, which comprises more than 40 businesses, follows the introduction in 2017 of the European Battery Partnership to help trade transition away from fossil fuels.

Market Insider cited German officials as saying that Tesla will receive subsidies of more than EUR 1 billion from the federal authorities and the provincial state of Brandenburg, where Tesla is building a car and battery warehouse due to happen in the summer.

Elon Musk, CEO of Tesla, said in October that the automaker would develop Model Y with a new structural battery concept and technology in the production unit.

The spokeswoman for the German Ministry of Finance mentioned that it was not clear how much federal support Tesla would get. ​

The Ministry mentioned at the end of the week that Berlin had made almost EUR 1 billion available for the preliminary battery cell partnership and was ready to support the second mission with a further EUR 1.6 billion ($ 1.9 billion).

The spokeswoman for the Ministry of the Financial Sector in the State of Brandenburg refused to comment.

Tesla was not immediately available for comment. ​

The federal authorities are required to fund the better portion of the Brandenburg subsidies to contribute less than 10 p.c. The definitive resolution on the specific subsidies for Tesla is expected to take a range of extra weeks.

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