Why Is There Delays With Tesla’s Giga Berlin Factory?

Tesla (NASDAQ: TSLA) forecast that its Giga Berlin factory would be up and running late last year, but it’s still not here. What’s the hold-up?

Regulations²

As with most countries, there are a lot of lengthy planning procedures in the background that are causing delays. This includes working alongside local authorities, regional officials, and citizens before Tesla can jumpstart production — solving water supply issues was just one of many concerns mentioned.

But why is Europe so important? Well, with the exception of China, Europe is one of the most lucrative continents with a rapid EV adoption rate — sales grew 70% to 2.3 million EVs last year, and the market is expected to grow at a 42% compound annual growth rate. This is quite the opportunity, but right now, Tesla’s missing the boat.

Although late to the game, Volkswagen is benefiting from its home advantage and has swiftly become the market leader, with a 26% share of the European EV market. Tesla, on the other hand, has just 2%. Tying all that in, we see why it’s pertinent that Tesla scales production as fast as it can.

Although there’s no clearance for production at Giga Berlin just yet, there’s a glimmer of hope for Tesla bulls. Announced last week, Tesla’s Supercharger network in the Netherlands will be a testing ground to open its services up to all European EV owners in the long term. So even if it’s not Tesla’s vehicle a consumer bought, it can still monetize the systems in place now to capitalize on EV growth either way.

Delays or not, there’s still hope for Musk’s dream yet; to be the “first person to drive a Tesla ‘Made In Germany’”.