Tesla, Inc.'s TSLA Giga Berlin has been a non-starter, primarily due to opposition from local environmental groups.
What Happened: Tesla shared an image of Graffiti art at Giga Berlin on its official Twitter account on Friday, and the tweet was promptly retweeted by its flamboyant CEO Elon Musk. The graffiti is a collage of two paintings, with one showing a man wearing a mask and the other revealing a hand holding a ball extending from a building, on which Giga is written.
The tweets set tongues wagging over the possibility the Giga Berlin plant may soon begin operations. One Twitter user explicitly commented that "Giga Berlin has opened or is about to be opened imminently."
Graffiti art at Giga Berlin pic.twitter.com/aOj4kZNcbU
— Tesla (@Tesla) January 21, 2022
Related Link: EV Week In Review: Tesla Slips Below $1K Ahead Of Earnings, Nio Begins Locking ET7 Orders, BYD Raises Prices And More
Why It's Important: The start of production at Giga Berlin is very important for augmenting capacity. Tesla is now facing logistics inefficiencies, as it is primarily exporting made-in-China cars for deliveries in Europe.
Tesla officially announced Germany as the location for its European production plant in Nov. 2019. The plant was to be located in Grünheide, a municipality in Brandenburg, about 30 kilometers southeast of Berlin.
Tesla planned to produce batteries, battery packs and powertrains as well as assemble Model Y SUVs at the plant. Construction at the site began in June 2020 and production from the site was initially planned to be started in July 2021.
The start of production, however, has been delayed multiple times due to opposition from environmental groups, who complained about the plant's impact on wildlife and water supplies. Tesla held the Giga Fest to mark the completion of the factory in Oct. 2021.
The necessary permits to commence construction haven't been received yet. Tesla closed Friday's session down 5.26% at $943.90.
Related Link: Why This Analyst Thinks Tesla Is a $2,500 Stock And When It May Reach That Price Target
Photo: Courtesy of Stephan Lechner on Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
