Tesla struggles with resistance and market problems in Germany

Tesla remains committed to its expansion plans for the factory in Grünheide but is facing growing protests and a challenging market environment.

8/5/2024, 6:30 PM
Eulerpool News Aug 5, 2024, 6:30 PM

Tesla faces significant challenges in Germany.

The electric car market is currently in a slump.

The planned job cuts at Tesla are also affecting the plant in Grünheide. "Our early-year planning predicted significantly stronger growth, which has not materialized," explained Thierig. "We have eliminated the 400 positions fairly quickly and quietly with an attractive severance package.

A positive signal Thierig sees in production for the British Isles: "By now serving the right-hand drive market in Great Britain and Ireland from Berlin, we have a larger sales market that we can directly access.

The expansion in Grünheide is stalling, however. The first application for environmental approval with the state of Brandenburg has been submitted, but it is delayed. Initially, it involves construction measures on existing buildings for which the state environmental agency has issued a preliminary approval. Thierig expects the first partial approval in September or October. Two more applications are planned, including one for the approval of a new factory.

The start of the year was bumpy. Production came to a halt for around two weeks in January and February due to missing components caused by attacks from the Yemeni Houthi militia on ships in the Red Sea. Furthermore, protests against Tesla are growing. Since February, environmental activists have been camping in the forest near the factory to protest against the expansion and water consumption. Following a citizen survey in Grünheide, which predominantly opposed the expansion, less forest is to be cleared.

In March, there was an attack on the factory's power supply, leading to an almost week-long production halt. In May, environmental activists attempted to storm the Tesla site. In June, production came to a standstill again—according to Tesla, this was due to internal optimizations. The car manufacturer has increased automation: parts previously transported by forklifts are now moved fully automatically.

Planning is currently underway for a new freight station, which requires clearing forest land owned by the state. 'We are in talks with the forestry department about the purchase,' said Thierig. The Brandenburg State Parliament's Finance Committee must approve the purchase - it is unclear whether this will happen during this legislative period. 'Then we would have a chance to possibly finalize the purchase this year.'

Tesla emphasizes that the factory's water consumption, at less than 500,000 cubic meters last year, was significantly below the agreed amount. Tesla uses 1.8 cubic meters of water per car, which is below the industry average. "We are building electric cars here, we are not an oil refinery or whatever," Thierig said critically about the protest. Nevertheless, the protest camp in the forest near the factory remains.

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