The billionaire surprised the audience at the Auto Bild vehicle awards ceremony on Tuesday by saying he would build Tesla's (TSLA) first European plant near Berlin.
The company had earlier said it chose a location near Berlin for a new design center and plant to make batteries, powertrains and vehicles, offering a major boost to the German capital. This month it announced it will plough more money into the build-out of national charging stations and increase the subsidies on electric cars to attract more buyers.
"Everyone knows that German engineering is outstanding, and that's part of the reason we are locating our Gigafactory Europe in Germany", he said.
"Even if you discount the environmental situation, eventually we will run out of oil. you can't recycle oil", Musk said, adding that his original interest in electric cars went back to "almost high school".
Mass production of the auto will start in 2021 and the vehicle will be sold under the Hengchi brand, China Evergrande said in a statement on Tuesday. The Model 3 picked up Germany's Midsize Car of the Year gong at the evening, beating the BMW 3 Series and Audi A3.
In the March following the Grohmann acquisition, the firm's founder, Klaus Grohmann, left the company, reportedly because of a disagreement over focusing on Tesla projects rather than those of German-based rivals Daimler and BMW, chatty sources told Reuters at the time, although this was never confirmed. He said that Brandenburg's renewable energy resources were an important deciding factor for Musk. "We offered various locations and this one suited Tesla", Woidke said.
More respondents traded in BMW vehicles, as a proportion of the company's U.S. market share, for their Model 3 than vehicles from any other brand. The first vehicle to be built there will be the upcoming Model Y small SUV, according to Musk.
Aerial photo taken on shows the tesla gigafactory at night in Shanghai, China.
Tesla's first "Gigafactory" was constructed in the USA state of Nevada, and its vehicles are built mostly at a factory in Northern California.
The company has been dogged by concerns it may not be able to ramp up production to meet demand and that Musk may have overstated Tesla's goals for sales and technology improvements.