Tesla Frustrated With Germany’s Protracted Approval Process
Tesla (NASDAQ:TSLA) is frustrated with Germany, which is not giving it approval for its Gigafactory near Berlin. The company said that the country needs to approve the project to enable it fast-track the project.
In a letter to Berlin’s regional court, Tesla expressed concerns related to the approval process. According to the company, it has been 16 months since it has applied for approval. However, they aren’t getting the approval. If the loopholes in the approval process are not addressed quickly, Germany’s climate targets may get hit. In the letter, the company blamed Germany’s cumbersome approval processes that are creating obstacles in fast-tracking the project.
Albeit Tesla has done its work adequately by almost finishing the factory’s construction, the production process that was supposed to start in July may further witness delay. Supporting Tesla, Andreas Scheuer, Transport Minister, tweeted that Germany needs to streamline the approval process, condense bureaucracy & encourage innovation.
Earlier Developments
A German court in February 2020 authorized Tesla to cut down trees and start building the factory. Through this novel project, Tesla plans to produce over 500,000 cars annually and give jobs to 12,000 people. In case the company does not get approval, the carmaker may annihilate the project, which is not good for Germany.
The government’s spokesperson in Brandenburg, where the carmaker is erecting its factory, said that the officials cannot differentiate climate-friendly from climate-damaging investments. The spokesperson also said that to fast-track & manage the carmaker’s factory approval, Brandenburg’s State Chancellery establishes a task force.
The construction already witnessed many snags from day one. German media in December reported that the carmaker halted the construction of the factory after it missed the deadline of depositing €100 million (that is equal to $120 million) security deposit. Moreover, environmentalists also created many obstacles in setting up the factory.
This project is vital for Tesla. Through this Gigafactory, the carmaker plans to take on its rival Volkswagen and further expand its wings in the EV market.