Tesla has set its sights on a major expansion of its Gigafactory located near Berlin, intending to double its size and production capacity, which could potentially make it the biggest auto manufacturing facility in Germany.
According to recent filings with local officials, Tesla is seeking approval to expand its current factory in Brandenburg, an eastern state in Germany, in order to enhance its vehicle and battery production capabilities. If the plan goes through, Tesla’s facility could churn out up to a million electric cars annually, reports the Wall Street Journal.
However, the green light for the proposed changes is conditional on the completion of an environmental impact study. Local citizens will have the opportunity to provide their inputs on this study, and any objections raised will be addressed at a potential public hearing, likely to take place in October.
Tesla, which began production of its best-selling Model Y at the Berlin outskirts factory last year, had previously faced opposition from environmental groups over the potential impact of the plant on local forests, wildlife, and water sources. This proposed expansion may face similar hurdles.
Despite facing competition from Germany’s major auto brands, Tesla has made a significant impact on the European market. The Model Y and Model 3 were the bestselling all-electric vehicles in Europe in the first quarter, and Tesla’s overall sales saw the company outsell established manufacturers such as Nissan and Volvo.
Tesla’s market share of total new vehicle sales in the region grew to 2.6%, selling 138,294 new cars in the European Union, its free trade association partners and the U.K., in the first five months of this year.
While the European electric vehicle market has seen a slight slowdown, sales growth has remained robust. In the first five months of this year, sales of all-electric vehicles surged by 42.3% to 730,137 vehicles in the EU, EFTA, and the U.K., according to data from the European Automobile Manufacturers’ Association.
However, the planned expansion has also drawn attention to labor issues. While Germany’s IG Metall labor union has welcomed the prospect of additional jobs at Tesla’s Grünheide plant, it also raised concerns about recent layoffs of employees and contract workers. IG Metall’s district manager for Berlin, Brandenburg, and Saxony, Dirk Schulze, stated, “Almost 200 regular employees were laid off or signed severance agreements last month alone.”
As of now, Tesla’s Grünheide plant is not unionized, though IG Metall maintains a presence nearby and conducts outreach among the Tesla workforce.
