Tesla Berlin gigafactory finally gets green light, but there are conditions

Tesla plans to make 50,000 electric vehicles every year at Berlin gigafactory, 
By : HT Auto Desk
| Updated on: 05 Mar 2022, 09:24 AM
The street sign "Tesla Strasse" stands at the construction site of the Tesla Gigafactory Berlin Brandenburg. (AP)
The street sign "Tesla Strasse" stands at the construction site of the Tesla Gigafactory Berlin Brandenburg. (AP)
The street sign "Tesla Strasse" stands at the construction site of the Tesla Gigafactory Berlin Brandenburg. (AP)
The street sign "Tesla Strasse" stands at the construction site of the Tesla Gigafactory Berlin Brandenburg.

Tesla has finally received the green light for its Berlin gigafactory on Friday, which has been long delayed. This has ended months of delay for the $5.5 billion landmark project for the EV maker. This comes as the second gigafactory outside the US. Tesla previously opened another gigafactory in Shanghai, which currently produces Model 3 and Model Y. The Tesla Berlin gigafactory will roll out the Model Y electric crossover, which is the brand's second bestselling EV. Tesla plans to roll out 500,000 battery-powered electric vehicles each year from this plant.

(Also Read: Ukraine-Russia war triggers fear in auto industry over worsening chip crisis)

While the green light for the Giga Berlin comes as a much-awaited breather for the US electric car major, there are some conditions as well. The EV company must first prove that it fulfils numerous conditions to get the operating permit and to start mass production of vehicles. These conditions are related to water use and air pollution control.

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Tesla plans to show the authorities that it meets the imposed conditions within the next two weeks, while any objections can be filed over the next month, revealed the German authorities. The automaker will have to face the next challenge as it will try to scale up production as quickly as possible.

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Tesla was earlier supposed to start production of the plant last year. However, due to several litigations, the operations were delayed. The plant has faced the ire of environmentalists since the beginning.

The new Berlin gigafactory is going to be crucial for the automaker's strategy to increase its market share in Europe, where it aims to beat the market leader Volkswagen. The German auto major has an upper hand in the European market with a 25 per cent share in EV sales, while Tesla has 13 per cent. Elon Musk's company aims to increase the stake further and the Berlin factory is expected to play a key role in that. Also, Tesla would be able to ship its Model Y crossovers to other regions from this facility.

Tesla has already hired around 2,600 workers for the plant and aims to employ up to 12,000 workers. The automaker is currently in talks with numerous parts suppliers in the region to source components locally as much as possible, which would eventually lower the waiting period and costs.

First Published Date: 05 Mar 2022, 09:19 AM IST
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