Tesla did not want to wait for European authorities to make a decision on state funding for its planned battery factory before going ahead with the construction of its site in Germany, outgoing German Economy Minister Peter Altmaier told reporters in Berlin on Monday according to Reuters.
As a foreign company, Tesla would have been eligible for state aid of up to 40% of its investment under a European Union programme that encourages production within the bloc.
Under the programme, the U.S. company could have received up to around €1.1 billion.
Due to booming demand for battery cells, Tesla voluntarily decided in late November to start construction on a battery plant at its Gruenheide site outside Berlin without state aid and withdrew the corresponding application.
