Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Tesla’s chief executive officer, Elon Musk, intends to begin production at the carmaker’s Berlin Gigafactory by October but has stated that delays in environmental clearances may impede the start date.


According to media reports, the Berlin Gigafactory is located in a water conservation region that has caused some local backlash and may hinder the progress of approvals for the Grünheide, Germany-based plant. 


The delay in starting this factory could also impact Tesla’s deliveries in the region. The company had noted in its Q2 2021 report that demand for Tesla models had outpaced supply leading to longer delivery times, making it imperative for the company to begin the factory as quickly as possible. 


Giga Berlin is slated to produce batteries, powertrains, and assemble full vehicles, starting with the Model 3 and Model Y. Initial production schedules are aimed at over 500,000 units per year, employing about 10,000 workers. At full scale, this facility will produce two million units annually


In Q2 2021, Tesla produced 206,421 units across its global plants, up 151pc from 82,272 units produced in the same quarter last year. In H1 2021, deliveries also increased 115pc to 386,181 units from 179,387 units in H1 2020. 

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