Tesla Inc (NASDAQ:TSLA) has been granted approval by the local government ministry near its gigafactory in Berlin to proceed with the first stage of its three-stage plant expansion plan despite protests from locals, Reuters reported on Tuesday.
What Happened: The approval will allow the EV maker to proceed with the construction of infrastructure for storage facilities, a battery cell test laboratory, and logistics areas, the report said. All of the construction will take place on land already owned by the company, the report added.
The approval comes despite resistance from locals. Locals have been protesting against the company’s plans to increase vehicle manufacturing capacity to a million units per year at the plant, citing environmental concerns.
In May, several protestors attempted to storm the company’s factory and even injured several police officers in the ensuing clash. Several protestors were taken into police custody over the incident.
In March, an arson attack on the factory caused a power outage and halted production for about a week. Activist organization Vulkan Group claimed the attack and said it was spurred by environmental concerns.
Tesla did not immediately respond to Benzinga’s request for comment.
Why It Matters: Tesla’s new car registrations in the European Union fell by about 15% to 152,607 units in 2024 through the end of August, according to data from the European Automobile Manufacturers’ Association (ACEA.)
In August alone, new car registrations fell 43%, compared to the corresponding period last year.
Tesla delivered 462,890 vehicles globally in the third quarter, marking an increase of 6.4% from the corresponding period last year, but below whisper numbers, sending the stock on a journey downwards.
Price Action: Tesla shares closed up 0.3% on Tuesday at $219.57. The stock is down 11.6% year-to-date, according to data from Benzinga Pro.
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Photo courtesy: Tesla
