American electric vehicle (EV) manufacturer Tesla’s German factory site in Grünheide has been temporarily suspended by the local authorities after the former defaulted on a €100mn payment as guarantee towards an expedited authorization procedure.
According to media reports, the automaker was expected to pay the fee by Dec 17. The payment date has now been extended until January 4, 2021. The plant’s builder is yet to attain several permits to build the factory at the location. Tesla has begun work in February of this year at its own risk.
The car maker is expects to produce 500,000 EVs annually from this facility, but the German authorities are worried about the environmental impact of the plant in the region. The courts have suspended deforestation operations in Grünheide as of Dec 18.