Having a continuous production at the Fremont, California assembly facility and the Gigafactory in Nevada close to completion means Tesla can think and discuss its medium to long-term plans.
Of course, with an established manufacturing capability in America, Musk’s company has to consider expanding overseas – either into Europe or into China. The latter is the world’s biggest market for cars and one that seems to support electric cars in the long run, but there are issues to consider – political climate as well as economic conditions, where any company from outside has to establish joint ventures and cede some control to a local partner. Europe meanwhile is more expensive but also way more stable and with better technological support – and a market that could grow exponentially if Tesla decides to invest in the Supercharger network.
Recently the US company acquired German technological group Grohmann Engineering and during a press conference following the purchase announcement, Elon Musk also responded to the question of whether they are considering a European production location. “There’s no question that long-term Tesla will have at least one – and maybe two or three – vehicle and battery factory locations in Europe,” was his response. He also elaborated that his company’s European strategy will kick off after the Model 3 production begins – so all things should become clear late next year.