BERLIN — In an effort to get more electric vehicles and batteries out the door of its new plant in Austin, Texas, Tesla will shift resources away from a similar project in Berlin.
The EV maker has told local government officials in Gruenheide, Germany, that it still intends to open a battery factory there, where it also opened a vehicle plant this year, but the company now aims to ramp up battery production in Austin faster than planned.
The urgency to prioritize Texas is because of new U.S. tax rules under the Inflation Reduction Act that govern which electric vehicles can offer buyers a $7,500 tax rebate. The rules require that both the EV and its battery be produced in North America. As a result, Tesla has paused plans for a 50 gigawatt-hour battery factory next to its car assembly plant in Gruenheide.