Tesla’s factory in Germany said to face ‘massive’ delay

Tesla faces a “massive delay” to its target of starting production at its new European plant in the summer, sources told Automobilwoche, a sister publication of Automotive News Europe.

Critical buildings have not yet been erected on the site in Gruenheide near Berlin, five months before the planned opening of the factory, sources close to the company said. Tesla also has not yet submitted a building application to the local government office for a battery plant that the company plans to build at the site, they said.

Tesla aims to begin production of the Model Y compact crossover at the factory in July, with an eventual capacity of 500,000 vehicles a year, also including production of the Model 3 and a possible compact hatchback designed for Europe.

In a filing with the U.S. Securities and Exchange Commission Monday, Tesla pointed to its limited vehicle manufacturing experience outside of its Fremont factory in California. It said it might not be able to meet construction timelines because of issues such as regulatory compliance, procurement and supply chain constraints, hiring staff and “the pace of bringing production equipment and processes online with the capability to manufacture high-quality units at scale.”

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