Major delays in the construction of Tesla’s new German factory

Tesla planned to start building cars in its new German factory in the summer of 2021. But Tesla has not applied yet for a permit for the part that will build batteries for the smaller SUV Model Y and Tesla has explained to the American authorities that there may be major delays.
It is in documents from Tesla to the American safety and trade authority that representatives of Tesla acknowledge that there may be significant delays in the construction of the new car factory.

So far, Tesla has navigated tough environmental requirements and opinions from the conservation movement as well as an ongoing pandemic. But when Tesla submits an explanation to the authorities, it is stated that Tesla suffers from the fact that they do not have much experience in building manufacturing and factories outside the United States.

Disagreements about money
According to information in Germany, Tesla has not yet applied for the necessary permits to build the battery factory that will supply Model Y with batteries, and it is five months before the planned start of production of the car.

According to the original plans, Tesla wants to build about 500,000 Model Ys per year in the factory outside Berlin and there are plans to build another car model for the European market.

Last week, the EU gave Tesla, BMW and a few other companies grants of around SEK 10 billion to start production of electric cars and batteries in Europe. But representatives of German authorities tell the industry magazine Automotive News that there are no details on exactly how much money will go to which project.

Tesla, for its part, claims that the money for the new battery factory in Berlin was allocated to Tesla after the decision in January and that the German government only has to honor the deal.

Sales of electric cars in Europe picked up speed in 2020 and Tesla’s competitor Volkswagen is now showing several new models. A delay of six months can cost Tesla a lot in missed sales and lower market share.