Tesla Granted Conditional Permit That Paves the Way to Start EV Production at its New $5.5 Billion Gigafactory in Germany
【Summary】Electric vehicle leader Tesla will soon begin building its electric vehicles in Europe for the first time. The company was given a conditional building permit by authorities in Germany that greenlights the start of production. Once Tesla proves it meets various conditions, including in water use and air pollution control, it can start producing electric vehicles.
Electric vehicle leader Tesla will soon begin building its electric vehicles in Europe for the first time. The company was given a conditional building permit by authorities in Germany that greenlights the start of production.
However, the conditional building permit does not allow Tesla to start production right away. The company must first prove that it meets various conditions, including in water use and air pollution control. Once Tesla does so, the automaker will receive its long-awaited permit to begin building electric vehicles.
Tesla plans to show that it meets the imposed conditions within two weeks, Brandenburg's environment minister Axel Vogel said on Friday.
Brandenburg state premier Dietmar Woidke said at a news briefing that Tesla's conditional permit marks "a big step into the future", adding that the factory would be a major industrial and technological driver for Germany and the region.
The factory is located near the small community of Gruenheide and is officially named the "Tesla Berlin-Brandenburg Gigafactory" after the municipality it's located in.
Tesla's factory in Germany is its first European production facility and will build electric vehicles for the EU market. Once fully operational, the factory will produce up to 500,000 vehicles a year, according to Tesla. When it first opens, the plant will build the Model Y.
Production in Europe will help Tesla deliver the Model Y cars to customers faster and more cheaply. In the interim, Tesla has been shipping the Model Y to Europe from its factory in Shanghai as its awaits approval to begin production in Germany.
Tesla faced months of delays in getting final approval to start production at the new factory, including environmental concerns. Among the environmental concerns was the factory's impact on the environment, as part of the facility is located in a drinking water protection zone. The factory itself borders a wooded nature preserve.
During a visit to Germany in May 2021, Tesla Chief Executive Elon Musk blamed government bureaucracy for the delays in completing construction. As a result, he pushed back the planned opening for the factory to Oct 2021. Musk originally wanted the plant up and running by July 1, 2021.
Despite the delays and concerns of environmental regulators, Tesla's German gigafactory is for the most part, welcome in the region.
"We've gotten a lot of support and that's very much appreciated," said Musk in August of last year. "We feel very welcome and we're very happy to be here in Deutschland."
The factory will eventually employ around 12,000 workers. Roughly 2,600 have been hired so far, unions said last month, and Tesla is in talks with numerous suppliers in the region to source as much as possible locally, which can help reduce wait times and costs, while helping to boost the local economy.
In addition to the new German gigafactory, Tesla builds electric vehicles at its plant in Fremont, California and in Shanghai. The Shanghai plant produces Model 3 sedan and more recently, the Model Y SUV for the China and European markets. Tesla was granted approval from officials in China to start building the Model Y crossover in Nov. 2020.
Tesla is also in the process of building a fourth factory outside of Austin, Texas. The plant will produce Tesla's futuristic Cybertruck. However the Cybertruck, as well as the redesigned Roadster, have been delayed until at least 2023 as Tesla focuses on ramping up production of the Model Y to meet growing demand.
Tesla's expansion to Europe will put the company in direct competition with German automaker Volkswagen AG, which is the country's current electric vehicle leader. Volkswagen is Germany's largest automaker and has a 25% share of local electric vehicle sales compared to Tesla's 13% share.
However, Volkswagen is not standing by and allowing a competitor like Tesla to move into its own backyard without a challenge.
Volkswagen said on Friday it would spend about 2 billion euros on a new factory near its Wolfsburg headquarters to make the Trinity sedan, the first of a new generation of electric vehicles for the German carmaker that's due to hit the market by 2026. Construction of the new factory is set to begin next year.
resource from: Reuters
Ford Announces the Largest Utility Agreement in the U.S. History to Assemble All of its Vehicles in Michigan Using 100% Renewable Energy by 2025
Lucid’s New ‘Stealth Look’ Appearance Package for the Electric Air Sedan Compliments its High Performance DNA
Volkswagen Announces Pricing and Styling Updates for the 2023 ID.4 Electric SUV, Which is Being Assembled in Tennessee
Ford Unveils the F-150 Lightning Special Service Vehicle, a Fully Electric Pickup for Police Departments
Volkswagen Group China Unveils its ‘Flying Tiger’ Electric Vertical Take-Off and Landing (eVTOL) Passenger Aircraft Prototype
Volkswagen Starts Production of the Electric ID.4 SUV in Tennessee, Presents New Competition for Tesla, GM and Ford
Lucid Group Hires Key Executives that Formerly Worked for Mercedes-Benz and Tesla as it Prepares for Global Expansion and Production Ramp Up
Volkswagen Group of America President and CEO is Appointed to Lead the Automaker's New Electric Off-Road Truck Division ‘Scout’
- Volkswagen to Revive Scout Name With Fully-Electric Off-Roaders
- BMW Expands i4 Lineup With the Affordable eDrive35
- Honda is Developing Three New EV Platforms by 2030, Including One That Will Be Shared With GM, Executive Says
- Volvo’s EV Brand Polestar Reports Record Q1 Sales, its New SUV Will Be Officially Unveiled in October
- Reservations for the Electric Fisker Ocean SUV Reach 50,000, The Company Shares New Details About its Second EV Being Built by Foxconn
- Volkswagen’s Software Unit CARIAD Selects Innoviz as its Direct Lidar Supplier for the Automaker's Future Software-Defined Vehicles
- Ford Announces the Largest Utility Agreement in the U.S. History to Assemble All of its Vehicles in Michigan Using 100% Renewable Energy by 2025
- Qualcomm and its Industry Partners Demonstrate C-V2X Technology in Georgia That Ensures School Buses and Fire Trucks Never Get Stuck at Red Lights
- Ford Motor Co is Recalling 39,000 Expedition and Lincoln Navigator SUVs Over Engine Fire Risk
- Motional Kicks off its Robot Food Delivery Pilot With Uber Eats in Southern California