Tesla's German Factory Expansion Gets Local Council's Nod Despite Protests

EV giant Tesla Inc (NASDAQ:TSLA) has reportedly got the green light to expand its gigafactory in Berlin from the local council, despite protests from environmentalists and locals.

What Happened: The Gruenheide council approved Tesla’s plans to expand its German factory on Thursday, Reuters reported. However, the company also needs approvals from local environmental authorities before it can start its expansion efforts.

The EV giant is aiming to double the plant’s capacity for battery production to 100-gigawatt hours and car production to 1 million units annually and also intends to add a train station on the factory premises.

Environmentalists and locals have voiced against the proposed expansion. Earlier this month, several protestors attempted to storm the company’s factory and even injured several police officers in the ensuing clash. Several protestors were taken into police custody over the incident.

In March, an arson attack on the factory caused a power outage and halted production for about a week. Far-left activist organization Vulkan Group claimed the attack and said it was spurred by environmental concerns.

Why It Matters: As per Reuters, Tesla has already revised its expansion plans, reducing the amount of forests it intends to cut down to make way for the expansion to 47 hectares, about half of what was originally planned after local citizens voted against it in February.

On Thursday, Tesla also took to X to alleviate concerns about water use at the factory and claimed that the factory uses only 1.8 cubic meters of water for every Model Y manufactured, far below the industry average of 3.7 cubic meters. The company also recycles up to 100% of the factory process wastewater, it said, while also detailing the process in a short video.

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Photo Courtesy Tesla