Tesla To Be Fined In Germany Over 'Illegal Building Activity' At Giga Berlin

A local German authority that is key to Tesla Inc TSLA securing the final approval for its upcoming $7 billion gigafactory outside of Berlin is preparing to slap the electric vehicle maker with a fine for "illegal building activity," Reuters reported on Thursday, citing Tagesspiegel newspaper.

What Happened: The environment ministry for Brandenburg, the German state that surrounds Berlin and where the Elon Musk-led company is building its gigafactory, found that the electric vehicle maker had constructed tanks on the territory where it had no authorization. 

Tesla was previously banned from using the tanks it had already built, the report noted.

See Also: Nio's Next Move In Europe Could Be Battling Tesla In Crucial Market Germany, Indicates Job Post

Why It Matters: Tesla is waiting for the final approval from the environmental agency in Brandenburg, which, according to Reuters, is still pending and a further delay cannot be ruled out, even into 2022.

As per the report, Tesla’s proposed Gigafactory site partly overlaps a protected water zone and borders on a nature reserve, drawing opposition from environmental groups.

Tesla’s planned opening of the Berlin factory has been delayed amid resistance over environmental concerns and other issues and is now expected to commence later this year. Musk recently blamed German bureaucracy for the delay in starting production. 

Price Action: Tesla shares closed 1.27% higher at $652.81 on Thursday.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.