Shulou(Shulou.com)11/24 Report--

According to news on September 23, Tesla recently outlined the decisive factors in the location of his giant factory, including simplifying various approval procedures as much as possible. Analysts believe this may be because the company has learned a lesson from the process of building the plant in Germany. If it could start all over again, Elon Musk might not have set up its first European factory in Germany.

'Tesla has experienced a lot of similar things in Gruenheide on the outskirts of Berlin, 'Ben Kallo, an analyst at financial services firm Baird, wrote in a research note. In April last year, the company complained that the process of obtaining final approval for the plant project was "exasperating". In March, Musk danced excitedly at the opening of the factory, which was seen as a rare moment of celebration.

Tesla first announced that he would build a plant in Germany at the end of 2019, but construction was delayed for months because environmental groups worried that the facility would use too much water and threaten the survival of local wildlife. A few weeks after production finally began, Mr Musk called Tesla's factories in Germany and Texas a "huge melting pot of money" that had lost billions of dollars.

Now, more troubles are emerging. Last week, the broadcaster RBB reported that the city government of Glenhead had indefinitely postponed a vote on a plan to expand the Tesla plant by about 100ha, which aims to increase freight yards and warehouses for storing spare parts. At least part of the expansion will affect environmental reserves, and any plan to cut down more trees is bound to be strongly opposed by environmental groups.

Arne Christiani, mayor of Glenn Hyde, said by telephone: "Tesla needs to clarify the development plan of the entire Glenhead facility to the relevant authorities. It is not clear when this issue will be resolved."

There are signs that the German government's bureaucracy has taken a high toll on Tesla's investment in Glenhead. At the end of last year, the company decided to give up 1.14 billion euros ($1.12 billion) in state subsidies because it chose to first try to produce new batteries in Texas. Tesla suspended plans to build batteries in Germany and discussed shipping battery-making equipment to the United States, according to media reports this month.

But Jorg Steinbach, economy minister of Brandenburg, where Tesla's factory is located, said on Wednesday that he had been assured by Tesla that the plan was going well. "Tesla's commitment to Glenhead remains unchanged, especially with regard to expansion plans for car production," he wrote on Twitter after talking to Tesla representatives in Washington. The battery plant is nearing completion and internal process improvements and priorities are waiting to be determined. "

In all these reports, Tesla recently held an open day at the Glenhead Convention Center. Tesla employees in black T-shirts described the carmaker's plans for logistics, hiring and expansion, as well as several sensitive issues, such as water consumption.

One of the more concerned topics: Tesla employees said that due to supply chain obstacles, epidemic restrictions caused by factory closures and soaring logistics costs, it is no longer possible to achieve the scheduled production targets. That is why Tesla is trying to expand the factory, which has warehouses and multi-track yards to store more parts and move goods from trucks to trains.

Tesla has taken a number of unconventional steps to get out of production difficulties before, perhaps most notably in 2018, when the company faced challenges in increasing production of Model 3. In the end, Tesla built a temporary assembly line under a huge outdoor tent to increase production.

The German government's severe bureaucracy and strong trade unions make it more difficult to solve such unconventional problems. Last month, Musk said at Tesla's annual meeting that there are still many problems to be solved in Austin and Glenhead. While both plants may be difficult to operate, the company has clearly shown a greater willingness to do more business in Texas.

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