Tesla’s $7 Billion German Gigafactory To Postpone Launch?

Fran Sanders, Tech Times 22 June 2021, 03:06 am

Tesla’s $7 Billion German Gigafactory Postpones Launch to Late 2021 – Why Is There a Delay? — (Photo : Getty Image: Spencer Platt)

The start of July would have been a big deal for Tesla, especially its CEO Elon Musk. The company was supposed to have a grand celebration because of the launch of the company's German Gigafactory in the municipality of Gruenheide outside of Berlin.

However, with a combination of red tapes, fierce environmental resistance, and planning tweaks, Tesla German Gigafactory had to be postponed.

It is still unclear when the vehicles from the production line of the electric vehicle company's first European factory will be launched.

Tesla German Gigafactory - the Delay

According to Reuters, Tesla CEO Elon Musk revealed in 2019 that his company is planning to build the factory.

However, the company's site has its eyes set on partly overlaps with a drinking water protection area. It also borders a natural reserve, and the factory's construction has received heavy opposition from environmental groups and residents.

Environmental Factors

Tesla already postponed the expected opening date of its German Gigafactory to late 2021. However, Brandenburg's environmental agency, where it is $6.9 billion plants are undergoing construction, has still not confirmed its final approval.

This could lead to further delays in development down the road. The factory's launch could be delayed until 2022.

In 2019, Tesla had to stop its forest clearing operation because environmentalists from the Nabu local group insisted that it posed risks to a rare local snake. Its winter slumber might be disturbed by the EV company's plan to cut the trees.

According to Reuters, the snake species were already rescued even before Tesla proceeded with their activity. However, other efforts to stop the company's tree-cutting activity were executed on environmental grounds.

The report mentioned a statement from Manuela Hoyer, saying that a considerable portion of the forest will be emptied to create the required infrastructure and housing area for the gigafactory.

Hoyer added that building the factory within a protected drinking water neighborhood is considered a crime against the environment.

Her statement is a clear reflection of the locals' fear of the impact Elon Musk's electric vehicle company's factory poses to their local habitat.

Bureaucracy Issue

Although environmental concerns are some of the primary issues about the Tesla Germany Gigafactory's delay, other reasons have also surfaced.

Bureaucracy is one of Tesla's biggest headaches. It has been pitting the EV company's hands-on approach that goes against Germany's red tape.

Reuters reported that Tesla is currently working off preliminary construction permits. However, the company has already built significant factory structures and halls on the 740-acre land.

The company's new plant could only start operating after Brandenburg's State Environmental Agency already provides the much-awaited final permit.

What's Next for Tesla German Gigafactory?

The report mentioned that until mid-July, the public can still skim through 11,000 pages of Tesla's documents. These include tables, calculations, and blueprints of the expected gigafactory. The process indicates that anyone can still file an objection until August 16, 2021.

Until then, the Brandenburg environmental agency will decide if a public discussion should happen on September 13.