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For some time now, I’ve been questioning how a lot Tesla is holding again on increasing its manufacturing capability on account of an absence of want for it. It appears Tesla has to roll out a collection of incentives so as to stimulate extra client demand quarter after quarter, and has had to take action for greater than a yr. The corporate’s gross sales really dropped within the first two quarters of this yr, and have been barely up within the third quarter. We haven’t had information of latest factories of huge manufacturing unit expansions recently, and based mostly on these different traits, I wouldn’t anticipate them.
Nonetheless, maybe issues will change once more quickly? The gears of paperwork transfer slowly, and one simply clicked over. Maybe it means nothing, however we’ll have to attend to see. The information is that the setting ministry masking the jurisdiction of Tesla’s German manufacturing unit (aka gigafactory) has granted Tesla permission to construct a brand new corridor there, the start of huge growth plans for the plant. Tesla, finally, has plans to double manufacturing capability on the manufacturing unit, and this can be a key subsequent step within the course of.
“The approval granted permission for the carmaker to proceed with the first of three stages of the expansion, including construction of infrastructure for storage facilities, a battery cell test laboratory, and logistics areas,” Reuters stories.
Manufacturing capability at Tesla Gigafactory Berlin is at present round 500,000 automobiles per yr, and the purpose is to boost that to 1 million automobiles per yr, which might make it the biggest auto manufacturing facility in Germany, which, after all, is among the main auto manufacturing international locations on this planet and has a handful of homegrown auto giants in-house. Volkswagen’s manufacturing unit in Wolfsburg is at present the nation’s largest auto manufacturing unit, however Tesla’s gigafactory would surpass it in measurement (manufacturing sensible) if it expands as desired.
There was native opposition to the manufacturing unit’s growth for greater than a yr, which has included activists tenting and even residing in treehouses close by. It have to be an attention-grabbing life. Regardless of all of these protests and constestations, although, the native authorities has given Tesla permission to increase finally. Does that imply Tesla will quickly increase? The corporate has an infinite amount of money readily available, however is it sensible to make use of it for this proper now?
The appliance was submitted in July 2023, when Tesla gross sales development was nonetheless robust, and effectively earlier than Tesla noticed its gross sales decline in 2024. On the time, the plan was to get new parts of the plant operational within the first half of 2024, which is now over. Within the meantime as effectively, although, Germany abruptly eliminated large EV subsidies and the EV market in Europe’s largest auto market, which has led to struggles in Europe’s largest EV market. Plugin automobiles have been 21% of the German auto market in September 2023, they usually have been simply barely higher final month, in September 2024, reaching 23.7%. Reuters does add that, “the plant’s director, Andre Thierig, told German media in August that the company was waiting to invest until it was clear that demand for EVs, which has weakened in Europe, would pick back up.” So, plainly even with this approval, Tesla could not do something to get began on the growth till the EV market picks up once more. We’ll see, and we’ll maintain you posted.
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