Tesla Inc's TSLA European ambitions just got a shot in the arm, as the electric vehicle giant was included among companies eligible for receiving state aid.
What Happened: In line with Europe's quest to increase the share of green energy vehicles, the European Commission has earmarked 2.9 billion euros ($3.5 billion) of government funding for battery projects in the region, Bloomberg reported.
This funding will be disbursed to about 42 companies, including Tesla, Bayerische Motoren Werke AG BAMXF and Stellantis NV STLA, the report said.
The government funding, according to the report, will trigger more than three times financing from private parties, taking the total funding available to more than $11 billion.
Why It's Important: Tesla is constructing its Giga 4 in Berlin, which houses a dedicated facility to manufacture its self-developed 4680 battery.
The EU financing should come in handy for meeting the capital needs of the project, and in turn reduce its reliance on outside suppliers.
At last check, Tesla shares were gaining 0.91% to $888.78.
Photo courtesy of Tesla.
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