U.S. electric carmaker Tesla (NASDAQ:TSLA) has closed a deal to buy a property on the outskirts of Berlin, Germany where it plans to open its first European manufacturing centre, the company has announced.
The U.S. carmaker announced last November that it will build a giant factory in Gruenheide, in the eastern German state of Brandenburg, giving it the coveted "Made in Germany" label just as local rivals prepare to launch competing electric vehicles.
Tesla’s Board of Directors approved a purchase agreement with the state of Brandenburg on Saturday to acquire a 300-hectare property. The state parliament’s finance committee had already approved the sale on January 9.
The agreement states a preliminary property price of 40.91 million euros ($45.36 million U.S.). The property is in a designated industrial area. Politicians, unions and industry groups have welcomed Tesla’s move, which is expected to create up to 7,000 jobs in Brandenburg.
