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Tesla May Be Able To Begin Production In Germany If It Receives Conditional Approval

Tesla May Be Able To Begin Production In Germany If It Receives Conditional Approval

Image Source: CNBC

Officials in Germany said on Friday that Tesla Inc. had been permitted to begin commercial production at its new Brandenburg facility, which is located near Berlin. Tesla will begin production of both vehicles and battery facilities under the terms of the conditional license after delays that lasted for months.

Approval

According to CNBC, the big electric car maker has been granted the go-ahead to build Tesla automobiles and battery components at its production facility near Berlin.
Tesla had planned to begin production in the early summer of last year, but the pandemic, supply chain limitations, and environmental concerns forced it to postpone its plans.

“According to a translated announcement, the project, which was authorized with a 536-page decision, comprises a facility that will be capable of producing up to 500,000 automobiles per year.”

Although Tesla has received conditional clearance, the company must still wait until the license has passed a public objection procedure and other final inspections about water consumption and air pollution controls before it can begin operations.
It is expected that the entry of Tesla in Germany would signal a watershed moment in the country’s automotive sector, which is already home to giants such as VOLKSWAGEN GROUP Common Stock and Mercedes Benz Group ADR.

In reality, Volkswagen, anxious about the advent of Tesla, announced on Friday a $2 billion investment to create a new electric-car plant in Wolfsburg, Germany, which is expected to begin operations in 2026 and employ 1,000 people.

Environmental Concerns

The Tesla project also elicited the wrath of nearby residents who were worried about the site’s environmental consequences.

With the backing of environmental defense organizations, Residents’ groups tried all they could to prevent Tesla from setting up shop, from protests to litigation to open letters.
Following a complaint filed by environmental groups fearing that the natural habitat of protected species of lizards and snakes may be lost, the factory was ordered to cease its operations numerous times in 2020.

Another problem that sparked debate was the amount of water used by the proposed plant, given that it would be situated in areas that are very sensitive to water usage, having been hit by droughts in the previous three years.
Tesla is a member of the Entrepreneur Index, which keeps track of 60 of the top publicly listed firms controlled by their founders or their founders’ families, including Tesla.

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