Tesla’s German Gigafactory is reportedly facing “massive” delays and may not be completed by this summer, according to a new report.
German publication Automobilwoche asserts that a number of critical buildings at the site near Berlin have yet to be erected. While no explanation has been given, the news outlet adds that Tesla has also yet to submit a building application to the local government office for the battery plant it intends on constructing at the site.
Auto News reports that in a filing made with the U.S. Securities and Exchange Commission earlier this week, Tesla acknowledged that it may not be able to meet construction timelines due to issues including regulatory compliance, procurement, hiring staff and supply chain constraints, and may also face issues with “the pace of bringing production equipment and processes online with the capability to manufacture high-quality units at scale.”
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Tesla’s German Gigafactory will build all examples of the Model Y to be sold in Europe and will also produce the company’s new 4680 “tabless” battery cells. Tesla has been targeting a production start date in mid-2021.
In addition to experiencing some delays, Tesla may not receive as much government aid as initially reported. A recent report claimed that after the European Union approved state aid to Tesla, BMW and other car manufacturers to help them in the race to produce more electric vehicles, it was thought that Tesla would receive €1 billion ($1.2 billion) in government aid for the battery part of the Gigafactory.
Speaking with Automobilwoche, a spokeswoman for the German Federal Ministry of Economics said a final figure hasn’t been decided: “We cannot currently confirm the figures circulating about funding levels for Tesla. There is currently no final funding amount for individual projects.”
