Tesla's further expansion in Germany beyond existing buildings may be delayed by the manufacturer, German media reported. The company will focus on launching the production of Model Y and battery cells in the battery factory.
Tesla's original plan in Germany was to build a factory capable of producing 500,000 cars per year. In the plans, the manufacturer presented a drawing showing four buildings, the total production capacity of which, as expected, should be two million cars per year. According to initial estimates, Tesla hoped to start production at Giga Berlin in the summer of 2021 but later pushed back the expectations to October.
However, even adjusted expectations turned out to be far from reality. Although the factory building is already complete, the equipment is set up and ready for production, and test samples continue to roll off the assembly line, it has not yet received final approval for construction. In fact, Tesla is already facing a production delay of nine months, and when the final approval will be received is still unknown.
This situation is due to the fact that the approval of such projects in Germany is associated with a very voluminous bureaucratic red tape, and the approval process has unnecessary steps that delay progress. The example of Giga Berlin is illustrative, and the outrage of the manufacturer has caused many German politicians to rethink the approval process. Some of them called for appropriate changes.
German media Automobilwoche reported that Tesla wanted to focus on increasing Giga Berlin's production capacity, but the plan has now been shelved. This was a logical step, given how much time, money, and effort were spent on the construction of Phase 1, which has not yet been launched. It is likely that the manufacturer will be more willing to build another factory in Europe, which will be more desirable than in Germany and will meet with more significant assistance from another state.
According to Automobilwoche, Tesla had already made specific plans to increase Giga Berlin's production capacity to one million electric vehicles per year by "mirroring" the existing Gigafactory building, but that plan has now been put on hold indefinitely. Instead, for now, the company will focus on starting production of Model Y and batteries. In addition, it is planned to bolster the press shop’s capacity, which should increase the number of cars coming off the assembly line.
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