Just when things seemed to be going on smoothly for Tesla, an obstacle has cropped up. The American company planned to put up a Gigafactory over in Berlin, Germany, with the intent to start production in 2021. However, it appears those plans may be moved following the court ruling.
In a report from Business Insider, a German court has ordered Tesla to stop its deforestation to make space for the new Gigafactory manufacturing plant. Apparently, the move was part of objections made by the environmental group Gurne Liga (Green League). Tesla has yet to get permission to build its factory but was allowed to make site preparations at their own risk. Among the models, they plan to make there are the Tesla Model 3 sedan and the Model Y SUV. All future factories will make both vehicles and batteries as well.
"The Tesla plant has not yet been approved, and there is a legal requirement for an early release of the building specifications which clearly hasn't been met in this case," Gurne Liga lawyer Dirk Tessmer said in a statement.
Apparently, local activists are not keen on the idea of Tesla putting up a plant in the area. This is despite the fact that the company plans to replant an area reportedly three times as large as the factory being built.
"We are also working to ensure plenty of clean drinking water through water-saving measures in the factory as well as a structural solution with and for the community in the medium term," Tesla said via its website. Tesla has yet to issue an official statement on the development. As for the status of their plans in Berlin, a decision is expected to be issued this week.
Putting up key Gigafactory plants is crucial to the overall plans of Tesla. With the demand for EVs expected to increase, the company needs to make sure that they have factories in key regions to serve expected demand.
It also becomes another blackeye for Tesla CEO Elon Musk. They are already facing delays over in China due to the Wuhan coronavirus outbreak. This is expected to affect their production, meaning the availability of vehicles could be hit. However, they are not the only company dealing with such a dilemma but other China-based companies as well.
Despite these unfortunate developments, expect Musk and his team to do something to remedy the situation. Though their stock has been rising, they need to act now to maintain their mark.