Tesla To Amend Application For Berlin Gigafactory: What You Need To Know

Tesla Inc. (NASDAQ: TSLA) plans to amend the application for its Berlin Gigafactory, the German state in which the plant is being built said on Tuesday, Reuters reported.

What Happened: The German state of Brandenburg’s Ministry of Agriculture said Tesla’s amended application for the Gigafactory would include the construction and operation of a battery cell factory that was previously flagged by the electric vehicle maker, as per the report.

The ministry also reportedly said that as no further details about the nature and scope of the planned changes were available, it was not possible to say how long it would take for the site’s approval.

See Also: Tesla Analysts Unimpressed By Q1 Earnings: 'Not Much To Write Home About'

Why It Matters: Tesla has previously criticized the lengthy regulatory processes in Germany. Earlier this month, the company complained that German bureaucracy may delay the construction of Gigafactory Berlin.

Tesla had earlier planned to commence operations at the Berlin factory by July 1. In its most recent quarterly earnings report, the company said the buildout of the factory is continuing to move forward, with production and deliveries remaining on track for late 2021.

Gigafactory Berlin is expected to first produce the Tesla Model Y. This factory, which will be the first to use Tesla’s self-developed new 4680 battery cells, will serve most of Europe and may also export vehicles to other parts of the globe.

See also: How to Invest in Tesla Stock

With the construction of Gigafactory Berlin and Gigafactory Texas well underway, Tesla is in a phase of rapid growth. The company has said up to 500,000 Model Y cars could be produced at Gigafactory Berlin annually after construction at the site is completed.

Price Action: Tesla shares closed 4.5% lower in Tuesday’s regular trading session at $704.74 and further declined 0.4% in the after-hours session to $701.63.

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Photo: Courtesy of Tesla