Tesla’s German Gigafactory faces local hurdles as it nears completion
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Elon Musk is the SpaceX founder and Tesla CEO.
Michele Tantussi | Reuters
Elektrocarmaker TeslaThe company is removing the last hurdles in order to bring its gigantic German “Gigafactory”, up and running by the beginning of the year.
Berlin-Brandenburg is a plant that has been developing for two years. Despite the fact that the investments and the jobs boom have been widely praised, the Berlin-Brandenburg plant was not completed until now. mayor of the nearby town GründheideIts construction was impacted by numerous local disputes and oppositions.
This is the most recent hurdle. reported by regional outlet RBB24. This dispute regarding a water pumping station in the area where the Gigafactory’s is situated could result in knock-on effects to the factory’s operations.
The hearing was scheduled to be held in Frankfurt’s administrative court (Oder), but it was delayed. Concerning local authorities’ water supply, the case involves environmental groups. This would have included pumping water into Tesla’s facility. The facility is likely to use large amounts of water every year, which has drawn the attention of some environmental groups.
CNBC did not reach Tesla for comment.
It’s the latest development in a long winding saga for Tesla and its high-profile CEO Elon Musk — and getting the German facility fully operational is a vital component in Tesla’s future.
CNBC’s Dan Ives, Wedbush Securities managing director, stated that Berlin is the key to Tesla’s expansion plans in 2022 and beyond.
Tesla had to go through a lot of paperwork, so it is crucial for Tesla that they produce cars in January.
Obstacles local
Tesla announced plans for the Gigafactory near Berlin — its first in Europe — in late 2019, arriving on the doorstep of Germany’s traditional auto industry giants like Volkswagen and Daimler.
Although Tesla was able to move quickly despite the interruptions caused by the pandemic, the construction process has been plagued with local problems and bureaucracy since the very beginning. Recent criticisms have been directed at plans to extend the scope of the facility’s operations to include production of battery cells.
In the summer an internal report warnedPotential accident hazards at the facility. The company was meanwhile fined by local environmental authoritiesConstruction violations
Although the factory received lots of support from the community as it is a boon to the local economy, and has created many jobs over the next few years, there are 40,000 potential jobs. The mayor of the town of Gründheide previously called it a “once-in-a-lifetime chance” to stimulate the local economy.
This is the shell of the futuristic battery factory located on the Tesla Gigafactory construction area east of Berlin.
picture alliance | picture alliance | Getty Images
CNBC spoke with Ross Gerber from Gerber Kawasaki CEO, a Tesla investor. He said that the company isn’t worried about any of its hurdles. He said that it is not an issue because he knows the factory will soon open.
We are extremely bullish about the European markets, and we see a lot more demand for Tesla.”
However, there have been concerns raised about the potential negative environmental consequences. The water supply problem is a common concern. Musk announced his intention to retire in October. brushed off the questionAccording to him, there is plenty of water supply in the area.
It is available in its annual impact report for 2020Tesla stated that its new facilities in Germany and Texas would result in “further cuts in our water consumption per vehicle,” although he acknowledged the challenges of water supply due to climate change.
The climate is changing and water is more precious than ever. According to the report, water is becoming increasingly scarce as a result of climate change.
Tesla is also facing court action in other places over his comments. number of trees being cut downThe German construction site is surrounded by environmentalists expressed concern over the impactYou can also learn more about native wildlife such as sand-lizards.
They underestimated the amount of bureaucracy involved in building out Berlin’s infrastructure. Ives stated that they didn’t anticipate spending three months discussing cutting down trees.
European market
Pedro Pacheco from Gartner, an automotive analyst, said that the German factory’s impact will be significant but gradual.
According to him, “I believe the biggest difference will be in capacity. Tesla will have greater available manufacturing capacity. There will also be less lead-time for European customers because they won’t need wait for cars that are all the way from China.”
The Berlin facility, which Tesla could use to design new European models, would prove “crucial,” he said.
Germany is the largest automotive country in the world. It’s also the biggest in Europe. This means that if your goal is to access talent across Europe, Germany will be the best place to go.
As Volkswagen and other rivals move forward with their own plans for EV production in Wolfsburg, the competition will intensify the hunt for tech talent.
A second problem is the ongoing disruption in supply chains and shortages of microchips around the globe, which have impacted the automotive industry.
Gerber said that although he feels the automaker has weathered this crisis well, he still believes it will be felt in the industry for at most the first quarter of 2022.
Gerber stated that although it will be difficult in the first quarter next year, Gerber believes this material can work itself out once we move into next year. Gerber said, “I believe it will be an issue that will ease itself over the next twelve months.”
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