Hungary Offering Tesla Big Tax Breaks In Return For A Factory

The foreign minister of Hungary met with Tesla’s executives during a tour in Silicon Valley, promising them tax breaks and other incentives usually offered to car makers, as the EV manufacturer is searching where to build its European Gigafactory.

“Our purpose with today’s visit was to place Hungary on the map … as a country, which puts great emphasis on the car sector,” Peter Szijjarto was quoted as saying by Reuters.

Szijjarto said that Tesla responded “very positively” to Hungary’s incentives, as well as the country’s corporate tax rate, which sits at 9 percent and is the lowest in the European Union.

The minister said that Tesla will have two Supercharging stations ready in Hungary by the end of the year, with the local government planning to install more than 3,000 electric charging points by 2019.

Hungary’s car sector employs over 100,000 people and accounts for about a third of the country’s industrial output. Audi is currently one of Hungary’s biggest exporters and revenue earners, thanks to its Gyor engine plant which is said to be the world’s largest, supplying more than 30 VW Group sites.

Other major car makers in Hungary include Daimler, PSA Group’s Opel and Suzuki. South Korean SK Innovation also said last month that it would invest more than $770 million to build an EV battery plant in Hungary in order to meet the increasing demand from European car makers.

PHOTO GALLERY

  • They sure need European manufacturing based to expand there… But didn’t they choose Netherlands in while back?

  • Victor Chan

    Guess they are “Hungary” for a factory.

    • Masterdd123

      Not Hungry for this plant…but there are many car manufacturer in the region..like Audi,Opel..now PSA, Suzuki, and within a short distance there will be the new jaguar,land rover plat in Slovakia…and it seems the world goes for electric cars..and goverment agreed ona battery gigafactory what is able to support i e Tesla…and the others with battery. Samsung also made a battery plant not far from these companies.
      An accountant car enthusiast guy from Hungary! 😉 Greetings

  • smartacus

    What’s in it for this Szijjarto guy?

    • Masterdd123

      Szijjártó is the foreign minister here..good guy..can play football/soccer in USA.. And he live not far from my home in the same Town! XD
      Maybe he did not tell anything tesla about the payroll…lol one of the highest in europe and also the VAT isbthe highest in europe..27%…
      Smart guy!

  • Blackwater

    Good! Let that prick Musk steal from foreign taxpayers instead of America’s.

  • Blackwater

    Good! Let Musk steal from foreign taxpayers instead of America’s.

  • The Hungarian gov promised years ago rapid chargers all over the country next to motorways, nothing ever happened. Too much talk and too little done as usual.

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