The long-delayed Tesla, Inc. TSLA Giga Berlin factory could soon start cranking out vehicles, augmenting the electric vehicle giant's global production capacity.
What Happened: Tesla's Giga Berlin has received final environmental clearance, Bradenburg Minister-President Dietmar Woidke said at a Friday press conference.
The final construction permit for the factory has been issued to Tesla, Germany's State Office for the Environment said in a press statement.
Woidke said the approval was a mammoth task for Brandenburg. The state is situated in the northeast of Germany and surrounding the city-state of Berlin.
The permit issued reportedly discussed 400 conditions and requirements and is is a 536-page document.
The notice of approval will be published in the official gazette of the state and the local newspapers, and will also be made available online. Once the approval notice is published, a month's time is allowed for raising any objections to the project.
Tesla is expected to produce Model Y SUVs at the factory. The annual production capacity of the plant is 500,000 units.
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More Hiccups Ahead? Before Tesla can actually begin production, it has to meet several ancillary provisions, including the installation of devices for measuring pollutants and measures to offer protection against fire and accidents.
The approval application was first filed on Jan. 3, 2020 and revisions to applications were made in June 2020 and June 2021.
Environmentalists led by local group Grüne Liga are contending that Giga Berlin will pollute the surrounding environment, especially the drinking water. They have filed a case against Brandenburg's environmental office over according permission for a groundwater pump in the factory, Bloomberg reported in late February.
Given that Tesla is now exporting the Model Y vehicles sold in Europe from its Giga Shanghai plant, it is facing logistical challenges. A faster production start at the German plant, while augmenting capacity, will also help to alleviate these issues.
Tesla shares were down 0.47% at $835.36 midday Friday.
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An overhead view of a Tesla Model Y. Courtesy photo.
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