Tesla Gigafactory Berlin-Brandenburg employees work on a production line for a Model Y electric car on March 20, 2023.
Patrick Bluel | Image Alliance | Getty Images
Electric vehicle maker Tesla It failed to get a vote among local residents in favor of allowing a large factory expansion of the company's battery and automotive assembly plant in Brandenburg, Germany.
German state-owned broadcaster DW first reported on the vote and that Tesla needed to cut down nearly “250 acres of forest in the rural community of fewer than 8,000 residents near a nature conservation area” in order to expand.
Tesla's expansion plans in Gruenheide, which is located in the Brandenburg region about an hour's drive from Berlin, included designs for a rail freight depot and storage facilities that could help Tesla avoid relying on other logistics providers including existing rail freight and help them avoid . Production was temporarily halted due to a shortage of parts.
The vote is non-binding, according to the New York Times, which reported that local officials will try to find another solution.
On Wednesday, Tesla's vice president of public policy, Rohan Patel, wrote in a post on X, the social network owned by Tesla CEO Elon Musk, “There is no impact on any future expansion plans. We fully respect the referendum.” He stressed that Tesla plans to “double our work with the community and all stakeholders.”
The German factory temporarily halted production for about two weeks earlier this year as executives cited shortages of local components, caused or exacerbated by armed Houthi attacks on ships in the Red Sea.
In the last quarter of 2023, Tesla stated that this facility, which it refers to as its location in Berlin-Brandenburg, has an annual capacity to produce 375,000 Model Y vehicles for the company. The company also said in its latest quarterly report that its international manufacturing facilities, including in Germany, allow Tesla to “increase the affordability” of its vehicles for customers in local markets by “reducing transportation and manufacturing costs and eliminating the impact of unfavorable tariffs.” “. “.
While Tesla remains the best-selling brand in Europe, it faces competition from more battery electric models than ever before inside and outside the region.
Sales of new battery-electric passenger vehicles in Europe rose 29% year-on-year in Europe in January, according to the European Automobile Manufacturers Association. Germany and France currently represent the two largest markets for fully electric vehicles in Europe.
Tesla sales represented 1.7% of the total European passenger car market in January, including fully electric, hybrid and internal combustion engine models.
Tesla shares are down more than 20% year to date but traded roughly flat on Wednesday to close at around $195 a share.
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