Tesla leaves timeline for expansion in Grünheide open

Protest, production stoppages, market problems: This year, US electric car manufacturer Tesla is facing growing resistance in Germany. The company remains committed to its expansion plans for its only European factory in Grünheide near Berlin. However, due to the difficult market conditions, the timeline is entirely open.

"We firmly believe that the market will pick up again. It is certainly a question of how quickly and when," said plant manager André Thierig to the German Press Agency. But he emphasized: "We will not invest several billion in the expansion of the factory without clear signals from the market showing that there is demand."

The Tesla plant manager thereby not only makes it clear that building another factory would cost several billion euros but also states the condition for it.

"We can accelerate if we realize that it is necessary," said Thierig, who has been working in the automotive industry for almost 25 years. "We continue to produce three shifts, five days a week, and could ramp up at any time."

Significantly Fewer New Registrations of E-Cars

The electric car market is in a slump. In the first six months of this year, the number of new registrations in Germany in the electric sector stood at 184,125, including 21,249 Teslas, according to figures from the Federal Motor Transport Authority. The situation was better in the same period last year: 220,244 e-vehicles were registered at that time, including 36,384 Teslas.

The company led by tech billionaire Elon Musk concluded the second consecutive quarter worldwide with a decline in profits. The previously planned job cuts at Tesla also had consequences for Grünheide:

"Our planning at the beginning of the year predicted significantly stronger growth, which did not materialize," said Thierig. "We quickly and quietly cut the 400 jobs with an attractive severance program."

He points to production for the British Isles as a positive signal.

"By now serving the right-hand drive market in the UK and Ireland from Berlin, we have a larger sales market to tap into directly."

Application for Approval for Phased Expansion

Tesla has been manufacturing electric cars in Grünheide in Brandenburg for more than two years. According to the company, nearly 12,000 employees work there. The automaker aims to gradually increase the production from over 250,000 cars per year to one million vehicles per year.

The first environmental approval application for the expansion has been submitted to the state of Brandenburg, but it is delayed. Initially, it only concerns construction measures on existing buildings - for which the state environmental agency granted a preliminary approval.

"We expect the first partial approval to come in September or October," said Thierig.

The state environmental agency outlined a similar timeline. Two more applications are currently planned, including one for the approval of a new factory.

The start of the year was rocky. Production was halted for about two weeks in January and February because parts were missing due to attacks by the Yemeni Houthi militia on ships in the Red Sea. Protests against the US company are growing. Since February, environmental activists have been camping in the forest near the factory to protest against the expansion involving deforestation and a new freight station, as well as water consumption. Following a public survey in Grünheide, which mostly opposed the expansion, less forest is to be cleared.