Benzinga | Jan 26, 2021 12:54PM EST

Tesla To Share In $3.5B European Union Battery Aid: Report

Tesla Inc's (NASDAQ: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 (OTC:BAMXF) and Stellantis NV (NYSE:STLA), the report said.

Related Link: Tesla To Source Nickel-Heavy NCMA Batteries From LG Chem Starting In 2021: Report

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.

Related Link: Tesla Analyst Breaks Down Market Implications Of EV Maker's Inclusion In S&P 500 Index

Photo courtesy of Tesla.