Tesla lands key approval in Germany as it looks to ramp up production

Tesla (NASDAQ:TSLA) took a major step forward in Germany when the local environment ministry granted approval for the electric vehicle maker to build a new hall in what will be the first of three stages of expansion. The initiative is aimed at doubling the production capacity at Giga Berlin to 1 million vehicles per year.

The expansion plan includes new infrastructure for storage facilities, a battery cell test lab, and logistics areas. The construction will take place on land Tesla (TSLA) already owns.

Tesla’s (TSLA) Gigafactory Berlin-Brandenburg, also known as Giga Berlin, is the company’s first manufacturing facility in Europe. Located in Grünheide, about 35 kilometers southeast of Berlin, the factory began operations in March 2022 after some delays. It currently produces the Tesla Model Y, as well as manufacturing batteries, battery packs, powertrains, and seats. Tesla (TSLA) has invested approximately €4 billion in the project and employs nearly 12,000 people at the location. Tesla (TSLA) has noted that Giga Berlin features advanced manufacturing processes and is designed to be its most sustainable and efficient facility yet. The factory’s location near Berlin was chosen for its proximity to the new Berlin Brandenburg Airport and the city’s vibrant atmosphere.

Shares of Tesla (TSLA) traded flat on Tuesday. The EV stock is down about 8% from where it stood before the robotaxi event last week.