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Tesla's German plant has been delayed twice and completed in early 2022 at the earliest

May 4, 2021

Tesla's German plant has been delayed.


Earlier, Tesla said in its earnings report on April 26 that car production at its German plant is scheduled to begin by the end of 2021. A few weeks ago, it said the plant would be ready in July.


But the company's factories outside Berlin will not start production by the end of January 2022, according to a source quoted by Automobilwoche.


According to a report released on Sunday, Tesla CEO Elon Musk gave the team in charge of the plant six months to complete the project.


Tesla did not immediately comment.


Building a local manufacturing base in Europe and a new plant in Texas are Tesla's top priorities this year.


In Europe, without cars from Germany, the company will be contained in the explosive growth of existing electric vehicle sales led by Volkswagen.


"We think Berlin is the top priority of new products," Credit Suisse analyst Dan levy wrote in a report on April 27 His rating of Tesla is "hold.". He called Europe "the origin of the global turning point for electric vehicles" and expected the plant to make the company cut prices in the region.


Musk said last week that Tesla seems to have a year to 18 months to make the next generation of battery cells in-house. Although Tesla has been making batteries in California, musk has warned that it will be difficult to bring them to market.


"It's much harder to expand the production process than to prove something on a bench," Musk said at the European battery conference last November.


"The thicker and larger 4680 cell - named for its 46mm diameter and 80mm height - is largely unproven." Yasuaki takamoto, head of battery for Panasonic's electric vehicles, said they could be more difficult to produce and easy to overheat.


In addition to internal battery problems, Tesla faces administrative delays.


The company informed the local government last week that it would revise an application that had to be approved before production began. Although the on-site project including painting workshop and body stamping line has entered the late stage, environmental protection organizations have raised objections to the use of water resources and threats to local wildlife, thus delaying the approval process of the project.

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