Tesla Gets Approval for First Phase of German Plant Expansion

Tesla plans to double production capacity at its plant from 500,000 to one million vehicles a year, and the first phase of the expansion just got the go-ahead.

German authorities have approved the initial stage of Tesla’s expansion near Berlin, according to Reuters. The approval from the local environment ministry allows Tesla to build new infrastructure, including storage facilities, a battery cell testing lab, and logistics areas.

This three-stage expansion aims to double the plant’s capacity, potentially making it the largest car factory in Germany. Once completed, Tesla’s plant could outpace Volkswagen’s Wolfsburg headquarters in terms of production volume.

The construction will take place on land that Tesla already owns. However, the company has faced opposition from local activists and residents. Protesters have been occupying treehouses near the plant for over six months to demonstrate against the expansion. Additionally, a local vote earlier this year opposed cutting down trees for the project, though the vote was non-binding.

Tesla submitted its expansion application in July 2023, aiming to have the first changes operational by mid-2024. But in August, the plant’s director, Andre Thierig, said Tesla would delay further investments until they see a clear rebound in demand for electric vehicles (EVs) in Europe.

Recently, Tesla reported lower-than-expected growth in third-quarter deliveries, with incentives and financing offers not attracting enough buyers. This situation puts Tesla at risk of seeing its first annual drop in deliveries after years of rapid growth. In the third quarter, Tesla produced 469,796 units and delivered 462,890, a rise from the second quarter but following two quarters of declines.

Last week, Tesla’s founder, Elon Musk, introduced the ‘Cybercab’ prototype, an autonomous vehicle expected to enter production by 2026—though Musk hinted this could be pushed to 2027. The Cybercab, possibly priced under $30,000, will feature inductive charging and no traditional controls like a steering wheel or pedals. Musk also revealed plans for a ‘Robovan’ capable of carrying 20 passengers.