Tesla has received the green light from German authorities to commence the first stage of its plant expansion near Berlin, reported Reuters.
The local environment ministry’s approval allows the US electric vehicle (EV) manufacturer to construct additional infrastructure, including storage facilities, a battery cell test laboratory, and logistics areas.
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The three-stage expansion is part of Tesla’s plan to double the production capacity of its operational plant from 500,000 to one million vehicles per year, potentially making it the largest car facility in Germany.
Once complete, this move would surpass Volkswagen’s Wolfsburg headquarters in terms of production volume.
According to the ministry, the approved construction will take place on land already owned by Tesla.
Despite the approval, Tesla has encountered opposition from local activists and residents.
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By GlobalDataProtestors have occupied treehouses near the plant for over six months, demonstrating against the expansion.
Moreover, a local citizens’ vote earlier this year opposed the felling of trees for the expansion, although the vote was non-binding.
Tesla’s application for the expansion was submitted in July 2023, with the company indicating that the first set of changes should be operational by the first half of 2024.
However, the plant’s director, Andre Thierig, expressed in August that Tesla would delay further investment until there was a clear indication of a resurgence in demand for EVs in Europe.
The company recently reported a smaller-than-expected rise in third-quarter deliveries, with incentives and financing deals failing to attract sufficient customers.
This situation has put Tesla at risk of experiencing its first annual decline in deliveries after years of rapid growth.
In the third quarter, Tesla produced 469,796 units and delivered 462,890 units, marking an increase from the second quarter but following two quarters of declines.
Last week, Tesla founder Elon Musk showcased the ‘Cybercab’ prototype, an autonomous vehicle that could enter production by 2026, although Musk suggested this could be delayed until 2027.
The Cybercab, with a potential price tag under $30,000, will feature inductive charging and no traditional controls like a steering wheel or pedals.
Musk also announced plans for a ‘robovan’ capable of carrying 20 passengers.
