Tesla picks Germany for first European factory

It was only January when Tesla founder Elon Musk broke ground on his first factory in China.

Now the electric vehicle pioneer is adding Germany to his list of locations.

Musk said late Tuesday (November 12) his firm would build a factory in Berlin, near the city's new airport.

In a Tweet he said the plant would build batteries, powertrains and finished cars.

The first vehicles off the line will be Tesla's new Model Y.

It's a compact SUV designed to be more affordable than the company's current Model X.

The news comes after Tesla posted a surprise quarterly profit last month.

That sent its stock soaring.

But the firm faces huge investment demands.

Besides the factories in Germany and China, it's also developing new models including a pickup truck.

Analysts say there's still a long way to go before Tesla proves it can be consistently profitable.