Tesla is getting closer to its Germany gigafactory dreams

Tesla is one step closer to making its dream of producing 1 million EVs at its German gigafactory a reality.

Germany’s state of Brandenburg’s environment ministry approved Tesla’s scaled-back expansion plans for the factory that would allow for the Elon Musk-helmed company to meet its ambitious goals of doubling its annual production capacity, German press agency DPA reported Thursday.

The approval comes after fierce resistance from locals, some 800 of whom tried to storm Tesla’s plant outside Berlin in protest of the expansion, which originally would have resulted in clearing nearly 250 acres of nearby forest. Tesla’s revised plans mean it will no longer clear the woodlands.

Tesla’s been cited for breaking Germany’s environmental rules before; in 2023, the company’s gigafactory was cited for leaking 15,000 liters of paint, 30 tons of aluminum, and 150 liters of diesel into the surrounding environment.

The factory has faced other troubles this year, too. An arson attack forced Tesla to temporarily shut down the plant in March, costing the company about $1 billion.

Tesla’s Germany factory plays an increasingly important role in its ability to meet demand in Europe. In 2023, Europe imported 170,000 Tesla EVs from China, where its Shanghai factory has the capacity to make over 950,000 vehicles annually. Tesla may need to rely on its German factory more and more as the EU seeks to levy tariffs on Chinese EV imports.

Tesla isn’t the only EV giant looking to expand its Europe footprint. Tesla’s top rival, Chinese EV-maker BYD, announced plans in December to build a factory in Hungary in the hopes of overtaking Tesla in the region by 2030. But BYD’s Hungary plant would take two to three years to even build the capacity to make 200,000 vehicles annually, the New York Times reported at the time — a good sign for Tesla as it looks to maintain its dominance.