Tesla (TSLA.US) Berlin Plant Phase 1 Expansion Project Approved

The Zhitong Finance App learned that on Tuesday, the German environmental department approved Tesla (TSLA.US) to build a new plant near Berlin, taking the company an important step towards the goal of doubling production capacity.

The approval involves the first phase of a three-phase expansion project, including construction of infrastructure such as storage facilities, battery testing laboratories, and logistics areas. All construction will take place on land Tesla already owns.

Tesla plans to increase the annual production capacity of the Berlin plant from 500,000 to 1 million vehicles, which will make it the largest car factory in Germany, surpassing Volkswagen's Wolfsburg headquarters. However, the plan was strongly resisted by local residents.

The Berlin plant is Tesla's first manufacturing facility in Europe and began operations in March 2022. The plant currently produces Tesla Model Y cars, as well as batteries, battery packs, power systems, and seats. Tesla invested around €4 billion in the project and employed nearly 12,000 employees in the region. Tesla pointed out that the Berlin plant has advanced manufacturing processes and aims to be the company's most sustainable and efficient plant to date.