Tesla’s progress within the German manufacturing facility was slowed down by sleeping strains

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25 January 2020, Brandenburg, Grünheide: Tesla electric vehicles are parked on a road on the edge of a forest where the construction of a Tesla factory is planned.

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Tesla has cleared a pine forest to build its first European factory in Brandenburg. Now a German environmental agency has ordered the electric car company to suspend this activity until it can be proven that the action does not harm snakes and lizards in hibernation in the region.

The German newspaper Tagesspiegel reported for the first time on the court’s order to suspend the deforestation.

The delay was a second victory for environmental groups in Germany. Previously, Tesla surrendered to the activists’ demands and agreed to reduce water consumption in their new plant by more than a third.

Delays in factory construction could push Tesla’s production start in Europe later in the next year or beyond. The company wanted to produce its electric vehicles locally in Germany by July 2021.

Time is of the essence for Tesla in Europe – automakers in the region, including Volkswagen AG and Audi, are now selling battery-electric vehicles that rival Tesla’s most popular models, including the VW ID.3 and Audi Etron.

While Tesla was able to build a new vehicle assembly plant in Shanghai in less than a year, the company is facing a stricter regulatory environment in Germany. It had widespread political support in Germany but was pushed back significantly by environmental activists concerned about the factory’s water consumption and the impact on the Brandenburg ecosystem. It is also exposed to the demands of the German auto workers’ union, the 2.3 million member IG Metall.

When CEO Elon Musk announced plans to build an automobile plant in Germany in November 2019, he praised German engineering. At the time, Musk said: “Everyone knows that German engineering is certainly excellent. This is one of the reasons why we are locating our Gigafactory Europe in Germany. We are also going to build an engineering and design center in Berlin because Berlin.” has some of the best art in the world. ”

On Tuesday, Tesla announced in regulatory filings that the company is raising up to $ 5 billion as part of its third market offering for 2020 to support its expansion plans.

During a third-quarter earnings call, Tesla CFO Zachary Kirkhorn advised investors of higher spending over the next two years. He said, “Looking ahead to 2021 and 2022, we’ve revised our investment expectations by $ 2 billion to $ 2.5 billion. We have adequate liquidity and expected cash flows to fund. This is on an increase of scale in business for specific factories, including battery cell manufacturing, as well as for investments to allow for greater capacity expansion in the future. ‘

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