Tesla plans to expand its German factory
Production at Tesla’s new factory in Grünheide, Germany, near Berlin, has only just started and Tesla is already planning to expand the factory. Quoting local broadcaster RBB, elective says Tesla wants to buy about 100 hectares of land east of the current site to use for additional storage space and a freight station.
Apparently, at a time when things like chip shortages and the war in Ukraine highlight the pitfalls associated with “just-in-time” manufacturing, Tesla wants to have more of the components it needs to build its cars locally. Storage is expensive. The “just-in-time” model, which first took hold in Japan, transfers a large part of these costs to suppliers. But if there are no parts to supply, the model breaks down and production stops.
RBB indicates that the site in question is located between the RE1 railway line and the L23 and L38 departmental roads. A large part of the land belongs to the state of Brandenburg and would be suitable for sale. Edis, the local utility company, built a six-hectare transformer station in 2021 to supply the Tesla factory. The purchase price for the new plot of land has not been announced, but RBB says: “If state authorities demand the same price per square meter as for the first 300 hectares, Tesla would have to pay approximately 13 million euros for the additional surface. .”
Obstacles ahead for Tesla
The state government may be happy to strike another deal with Tesla – the new factory is boosting economic activity in an area where there was very little before – but the same local concerns that plagued Tesla when it started to develop the main site of its German factory. will also present obstacles to the new package.
As with the current site, the new area is overgrown with pine trees. Environmental groups were upset that Tesla cut down a lot of trees on the existing property he owns, even though he promised to plant many more elsewhere. The Grünheide city council is also expected to modify the development plan for the area, a process that could start as early as June this year.
Finally, the Strausberg-Erkner water board should approve the project. Like the current site, the 100 hectares are also located in a water protection area. The amount of water needed to operate the new plant has already caused consternation among local residents, and the new expansion plan will rekindle many of the same concerns.
Tesla has previously announced that it wants to receive as many components and products from suppliers as possible by rail and ship, and also get most of the vehicles made at the Grūnhiede plant to market by rail. Access to the German rail system was therefore one of the main considerations in determining where to build Tesla’s first factory in Europe. The new expansion plan will apparently facilitate the connection Tesla wants with the German rail system.
Local opposition to any expansion of Tesla operations will attract the usual suspects, who will boo and yell about trees, water and other concerns, but the outcome is already predetermined. Germany must get rid of fossil fuels faster than ever, thanks to the international kleptomaniac in the Kremlin. He needs Tesla to build electric cars for his citizens. You can say the fix is in place, but no matter what, Tesla will get what Tesla wants – eventually.
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