Tesla’s establishment in Grünheide, announced five years ago, has led to 12,500 new jobs and significant economic growth, generating six million euros in trade tax. Despite rapid construction and production of the Model Y, concerns about environmental impact and water usage persist, facing resistance from local activists. However, the project has also spurred regional development, with a notable GDP increase, while fostering a cooperative approach among authorities to promote economic advancement.
12,500 new jobs, 300 hectares of factory instead of Märkische Pine, six million euros in trade tax – and still a lot of resistance. A balance sheet after five years of Tesla in Grünheide.
It was an unforgettable evening at the ‘Golden Steering Wheel’ awards in Berlin when Elon Musk, the visionary behind the American electric car company, made a surprise announcement: ‘We have decided to establish the ‘Tesla Gigafactory Europe’ in the Berlin area.’ This marked Tesla’s fourth factory, following sites in Nevada, New York, and Shanghai. That announcement was made exactly five years ago.
This bold move was not merely spontaneous; it had been carefully orchestrated by political leaders over an extended period. ‘In the Berlin area’ eventually pinpointed the municipality of Grünheide, encompassing six districts from Kagel to Mönchwinkel in Oderspree. The Brandenburg state government demonstrated unwavering commitment: Tesla was welcomed with open arms. ‘It will not fail because of us,’ pledged Prime Minister Dietmar Woidke.
The Tesla Revolution
The rapid emergence of the factory serves as a powerful lesson on how progress can be achieved when the willingness to take risks prevails over hesitation. Business analysts suggest that German companies could learn valuable lessons from this approach. Grünheide already had a site prepared for industrial development, giving it a competitive edge over other European contenders. Interestingly, BMW had initially shown interest in this location but ultimately chose to withdraw.
With ambitious timelines in place, Tesla aimed to kick off production by 2021, meaning the factory would need to be constructed and operational within a two-year span. The state government was keen to avoid bureaucratic hurdles that could deter the dynamic Elon Musk.
A dedicated task force was created to facilitate seamless collaboration among various decision-making authorities, ensuring no unnecessary delays. This phenomenon came to be known as ‘Tesla speed.’ The project progressed rapidly, including the clearing of 90 hectares of forest, which the Mayor, Arne Christiani, described as inferior pine ready for harvest.
Tesla is set to produce a model priced at €25,000 in Brandenburg.
Challenges Ahead
Despite the swift construction, environmental groups and local citizen initiatives raised concerns, challenging the settlement through expedited processes. Nonetheless, the factory was inaugurated at an impressive pace, with Musk personally attending the grand opening, where he handed over the first ‘Model Y made in Germany’ to 30 eager customers. Federal dignitaries were present, and Chancellor Olaf Scholz praised the achievement, stating, ‘Germany can be fast.’
While some criticized Tesla’s approach, others admired its efficiency: the factory was built under provisional permits, with the final building permit taking an extended period to be finalized, by which time the factory was nearing completion. This method came with its risks.
Five years have elapsed since Tesla’s announcement, and the company, along with those who championed the project, appears to be thriving: 12,500 employees are currently producing 5,000 cars weekly, with expectations for continued growth. According to IHK Ostbrandenburg, many long-term unemployed individuals have found jobs at Tesla, and 500 workers have transitioned from temporary roles to permanent employment.
The immense Tesla factory is attracting enthusiasts from across Europe, while many local residents appreciate the resulting innovation boost.
Concerns Persist
However, the enthusiasm surrounding Tesla’s arrival is not universally shared. There has been significant skepticism regarding the economic necessity of Musk’s venture in Märkischer Sand, leading to widespread mistrust. The factory’s location in a drinking water protection area raises critical concerns, especially in a region grappling with water scarcity. This has become an ongoing conflict, although reports suggest that Tesla’s actual water consumption is lower than permitted.
Environmental groups have maintained a vigilant watch, likely prompting Tesla to adopt a more cautious approach to water use. Musk himself downplayed water concerns during a visit, noting the abundance of trees, perhaps envisioning the arid landscape of Nevada.
Activists have actively protested against Tesla’s presence, with some engaging in tree-sitting demonstrations and others demanding more transparency regarding the changes brought about by the factory. A request for expansion was largely dismissed, prompting Tesla to adjust its growth strategy.
Positive Impact on the Region
On a more optimistic note, Monique Zweig from IHK Ostbrandenburg views Tesla’s establishment as a significant boon. ‘It’s a great thing,’ she asserts, highlighting the palpable economic benefits across the entire region. ‘We are experiencing noticeable economic growth, largely attributed to Tesla,’ she explains.
The municipality has benefitted from six million euros in trade tax revenue, allowing it to tackle various community projects. The gross domestic product in the region has surged, with the district of Oder-Spree seeing a remarkable increase of 23.2 percent, and the structurally weaker Uckermark at 21.7 percent.
Concerns about Tesla luring workers away from other companies were downplayed by Zweig, who reported that most local businesses had seen few departures attributed to Tesla.
International Recognition and Future Prospects
Overall, Zweig believes Tesla’s presence serves as an exemplary model of effective economic promotion that transcends mere financial incentives. ‘The authorities collaborated seamlessly, often working in parallel to minimize bureaucratic challenges,’ she observes. This cooperative spirit is something that the chambers of commerce and industry hope to replicate for future endeavors.
Mayor Christiani reflects on the transformation brought about by Tesla’s establishment, recognizing the potential for continued progress in the municipality.