Tesla Can Start Production In Germany Under Conditional Approval

German officials said Friday that Tesla Inc (NASDAQ:TSLA) had been approved to start commercial production at its new Brandenburg factory, near Berlin. Under the conditional license, Tesla can start manufacturing both cars and battery plants after delays that stretched for months.

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Approval

As reported by CNBC, the giant electric vehicle manufacturer was given the green light to start producing Tesla vehicles and battery systems at its manufacturing plant near Berlin.

Tesla had intended to begin early summer last year but the pandemic, supply chain constraints, and environmental concerns put its plans on hold.

“The project, which was approved with a 536-page decision, includes the plant for the production of up to 500,000 vehicles per year, according to a translated release.”

With the conditional approval, Tesla still needs to wait until the license passes a public objection process and other final inspections relating to water usage and air pollution controls.

The arrival of Tesla in Germany will mark a turning point for the car industry in the country —the homeland of heavyweights such as VOLKSWAGEN GROUP Common Stock (ETR:VOW3) and Mercedes Benz Group ADR (OTCMKTS:DMLRY).

In fact, Volkswagen, concerned about the arrival of Tesla, announced this Friday a $2 billion investment to build a new electric-car factory in Wolfsburg, which should start operating in 2026.

Environmental Concerns

The Tesla project also provoked the fury of neighbors, concerned about the ecological impact of the site.

Resident groups supported by environmental defense associations did everything to block Tesla’s arrival, from demonstrations to lawsuits or open letters.

In 2020, justice forced the manufacturer to suspend its works several times, after a lawsuit by associations that fear that the natural habitat of protected species of lizards and snakes will be destroyed.

Another issue that caused controversy was water consumption of the future factory, since it is located in states that are highly sensitive in that regard, having been affected by droughts in the last three years.

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.