According to a media report, the electric car manufacturer Tesla has put the construction project for a battery factory in Germany on hold for the time being.

As reported by the Wall Street Journal, billionaire Elon Musk's company is currently examining whether a location in the United States would be more advantageous in light of a new US law to promote domestic battery production.

On Friday morning German time, Tesla said it would continue to rely on battery production in Germany, but would initially prioritize the United States because of the prospect of extensive funding.

The company explained this to partners in the region, as reported by the German Press Agency.

When asked, Tesla did not comment on the matter.

President Joe Biden's administration plans to give US citizens a $7,500 tax credit for purchasing US-made electric vehicles with a US-made battery.

Tesla had planned to build a battery factory in Germany in addition to the car factory already built near Berlin.

The batteries should also be shipped to the United States for installation in the vehicles, if applicable.

The Wall Street Journal, citing insiders, reported that Musk's company first wanted to examine the effects of the US law and was putting its project in Germany on hold until then.

The manufacturer also submitted a dossier to the Texas Audit Office at the end of August, a few days after the law was passed, to explore the possibility of building a lithium refinery in the southern state.

EU Commission calls tax credits "discriminatory"

This Sunday, the Prime Minister of Brandenburg Dietmar Woidke and his Economics Minister Jörg Steinbach (both SPD) are traveling to the USA.

In addition to political talks in Washington, a meeting with representatives of the electric car manufacturer Tesla is also planned.

It was open whether Tesla boss Elon Musk would also take part.

The US government's plans are also viewed critically in Brussels.

The EU Commission described the tax credits for buyers of US products as "discriminatory".

The Brussels authority sees this as a disadvantage for companies that obtain batteries for their electric vehicles from abroad, said a spokeswoman.

This violates the rules of the World Trade Organization.

Federal Minister of Economics Robert Habeck (Greens) said that he also spoke to his US colleague about the law in question on the sidelines of the G-7 meeting of trade ministers.

It is normal for him to point out “the interests of German companies or European companies” when talking to partners, he added.

It's also about "fair trade".