Tesla Inc’s plans to expand its Berlin Gigafactory have hit a roadblock as local citizens have voted against the company’s proposal to cut down trees to make space for the expansion. The vote, although not binding, poses a significant challenge to Tesla’s ambition to double the factory’s capacity for battery production to 100 gigawatt hours and car production to 1 million units annually.
According to a report by Reuters, the mayor of Gruenheide confirmed the rejection of Tesla’s proposal to clear the forest for additional logistical facilities. This leaves the decision in the hands of local authorities.
Tesla’s 2023 full-year report states that the Berlin factory currently has an installed annual vehicle capacity of 375,000 Model Y SUVs. Recent reports suggest that the factory likely achieved a weekly production of 6,000 Model Y vehicles.
Meanwhile, German automaker Volkswagen emerged as the most popular vehicle choice in the European Union in 2023, followed by Stellantis NV, the parent company of Chrysler.
Tesla, on the other hand, saw 279,042 new car registrations in the region in 2023, representing an 89% increase compared to the previous year, according to data from the European Automobile Manufacturers’ Association.
This development underscores the challenges faced by Tesla in expanding its production capabilities and keeping up with the growing demand for electric vehicles. The company will now have to navigate local regulations and seek alternative solutions to accommodate its expansion plans.
