After months of delay, the German factory of Tesla which is located in Brandenburg, a few kilometers from Berlin, has finally obtained the necessary authorizations to start production. It wasn’t won. Tesla has had to deal with the Covid-19 pandemic, difficulties in supply chains as well as fierce opposition from environmentalists on the site.
A very important factory in Tesla’s strategy
The German factory of Tesla should already be running for eight months. The Brandenburg plant is extremely important in Tesla’s global expansion strategy. This plant must allow to supply Europe, as the Shanghai gigafactory opened in 2019 helps meet demand in the Chinese market. Elon Musk’s company is also expected to open a factory in Texas in the coming months. In Germany, the approved project must allow the production of 500,000 vehicles per yearaccording to the press release.
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However, the clearance obtained does not mean that Tesla can start production right away. The license is subject to a public objection period as well as other final inspection conditions, including air pollution control and water use. This license was issued by the environmental office of the state of Brandenburg. Tesla will have to wait a few more days before turning on the machines. To obtain this authorization, Tesla still had to make some concessions…
In 2020, the company capitulated to activist demands and agreed to cut water use at its new plant by more than a third. The company also had to temporarily suspend its construction program during the same year. To make the factory, it was necessary to cut pine trees, in a forest that is home to snakes and lizards. Before continuing with the clearing, Tesla had to prove that it would not harm the habitat of these animals.
Sales of electric vehicles take off
This factory project in Germany dates back to 2019. At the time, Elon Musk praised German engineering. According to him, “everyone knows that German engineering is exceptional, that’s for sure. This is part of the reason why we are locating our European Gigafactory in Germany. We are also going to create an engineering and design center in Berlin, because Berlin is a true global artistic cradle”.
Tesla is grabbing market share in Europe. The American manufacturer competes with the major European manufacturers, and in particular with Volkswagen. Electric vehicles are popular. Between 2020 and 2021, sales have doubled to reach 6.6 million vehicles sold. Europe and China are today the two largest markets for electric vehicles. Between 2020 and 2021, the Old Continent experienced a 70% increase in electric vehicle sales, to reach a total of 2.3 million units sold. Elon Musk’s company has understood this perfectly and does not want to miss it.