Elon Musk On Tesla Giga Berlin Delay Says 'Less Bureaucracy, That Would Be Better'

Tesla Inc. TSLA CEO Elon Musk has blamed German bureaucracy for the delay in starting production at the Berlin Gigafactory, Reuters reported.

What Happened: “I think there could be less bureaucracy, that would be better,” Musk was quoted by Reuters as saying during a visit on Monday to the factory construction site in the German state of Brandenburg.

Musk reportedly added that while it was unclear when production would start at the plant, he expects production to commence by the end of 2021.

Brandenburg's Economy Minister Joerg Steinbach said no meetings were planned with Musk as the Tesla CEO’s visit to the state was “technical in character,” as per the report.

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

The electric vehicle maker had earlier planned to commence operations at the Berlin factory by July 1 this year. In its most recent quarterly earnings report, the Palo Alto-based company said the buildout of the factory is continuing to move forward, with production and deliveries remaining on track for late 2021.

It was reported earlier this month that the start of production at the Berlin factory has been delayed until at least January of next year due to issues over battery pack production and changes to the application submitted to local authorities regarding the plant.

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.

Price Action: Tesla shares closed almost 2.2% lower in Monday’s regular trading session at $576.83 and further declined 0.8% in the after-hours session to $571.94.

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