US ELECTRIC car pioneer Tesla has agreed to buy a property on the outskirts of Berlin, bringing it a step closer to opening its first European factory, local authorities said yesterday.

The US car maker last November announced plans to 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 models.

Tesla's board of directors approved a purchase agreement with the state of Brandenburg over the weekend to acquire a 300-hectare property, a Brandenburg government spokesman Florian Engels said in a statement. The state parliament's finance committee had already approved the sale on 9 January.

A Tesla spokeswoman confirmed the deal.

The agreement states a preliminary property price of €40.9m (£34.9m) which can be amended if an external review provides a different value, Engels said.

The property is in a designated industrial area and is being checked for weapons from World War II as there are most likely unexploded US bombs still in the ground.

Reuters

(c) 2020 City A.M., source Newspaper