Tesla Set to Begin Production At Giga Berlin In December: Report

Tesla, Inc. (NASDAQ: TSLA)'s long wait to get production lines rolling at its Giga Berlin could be over.

What Happened: Tesla will likely commence production operations in Germany in December, Bloomberg reports, citing German magazine Automobilwoche.

Commencement of operations has been delayed inordinately due to Tesla's inability to get environmental clearance for the site in Grünheide, a municipality in the Oder-Spree District, in Brandenburg, which is situated 30 kilometers south-east of Berlin.

Local regulators are likely to grant the requisite permits within days, the magazine reportedly said.

Serial production will reportedly start in January, with the production rate gradually increasing from 1,000 cars per week in January. The German plant could manufacture as many as 30,000 vehicles in the first-half of 2022, the report added.

Why It's Important: Tesla is currently meeting the demand in Europe by exporting from its Giga Shanghai. This involves logistical challenges and also lengthens lead times.

For Musk & Co., an expeditious opening of the plant after a protracted delay could be the need of the hour.

On Friday it was revealed that Tesla withdrew its application for availing $1.3 billion in German government subsidies for its proposed battery manufacturing plant at its Giga Berlin.

Tesla closed Friday's session down 3.05% at $1,081.92.

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