Tesla took a significant step toward doubling the production capacity at Giga Berlin Tuesday after receiving approval from local authorities to build a new hall.
This marks the first of three phases in Tesla’s planned expansion, which will include new infrastructure for storage, a battery cell test lab, and logistics areas.
The construction will take place on land Tesla already owns, according to the local environment ministry. The expansion aims to increase the plant’s capacity from 500,000 to 1 million vehicles per year, making it the largest car plant in Germany, surpassing Volkswagen’s Wolfsburg facility, reports Reuters.
However, Tesla’s plans have faced strong opposition from local activists, some of whom have been protesting by living in treehouses near the plant for over six months. Earlier this year, local residents voted against clearing trees for the expansion, but the vote was non-binding.
Despite the approval, Tesla is being cautious about the timing of its investment. In August, plant director Andre Thierig stated the company was holding off on further investments until demand for electric vehicles in Europe picks up again, which has been sluggish recently.
Tesla is set to announce its Q3 earning later this month, after setting a new record for deliveries in the fiscal third quarter.