Tesla is restarting its factory in Germany after a forced break


E-AutosAfter a forced break: Tesla is restarting the plant in Germany

The electric car manufacturer had to almost completely stop its production in Grünheide near Berlin. In addition, the car manufacturer has an obvious demand problem.

Tarek El Sayed
  • After a forced break, Tesla is restarting its machines in Germany.

  • Production was put on hold for around a week and a half due to the tense situation on the Red Sea.

  • Tesla is currently faced with other challenges – one of which is the ever-increasing competition.

The electric car manufacturer Tesla had to take a forced break at its only European factory in Grünheide for around a week and a half. Production is now scheduled to be fully ramped up again on Monday, February 12th.

Tesla suspended car production on January 29th due to attacks by the Yemeni Houthi militia on ships in the Red Sea. Because components were missing, the transport routes were shifted. But not everything stood still: Tesla said it continued producing where possible, carried out maintenance and repairs and trained employees.

The situation on the Red Sea is disrupting world trade, including the auto industry in Europe. Volvo and Michelin had also decided to cut production.

Expansion plans in Germany

The temporary production stop came amid planned expansion plans. The company would like to expand the production area in Grünheide from 280 hectares by a further 110 hectares. To do this, a large part of the forest has to be cut down.

The local council gave the green light for the development plan a year ago. A resident survey is currently underway in which 7,000 residents are asked to provide a statement by post on the expansion plans.

According to several reports in German media, the community is very divided.

Tesla with fewer sales

From the electric car manufacturer’s perspective, the last few weeks have been anything but positive. Due to high inventories of the Tesla Model Y, Tesla lowered prices first in China and then also in Europe.

At the end of 2023, the Chinese car manufacturer BYD replaced Tesla at the top of the most successful electric car manufacturers. Compared to Tesla, the company delivered around 43,000 more electric vehicles in the last quarter.

BYD taunts Tesla

The direct comparison of the two companies angered Musk. In response to a Platform X (formerly Twitter) user comparing Tesla and BYD, Musk said Tesla is an artificial intelligence company and not just a car manufacturer.

Almost three weeks later, BYD declared war. A senior executive said on a Chinese social media platform that Musk should be ready for this year. The Denza N7 model, produced in collaboration with Mercedes, “will triumph over the Tesla Model Y”.

Tesla is currently planning to introduce an entry-level model that will be available starting at 21,500 francs. Production in Mexico is not scheduled to start until 2025.

Tesla is no longer among the most popular brands

Another setback for Tesla: The company Brand Finance, which specializes in brands, published its ranking of the best brands at the WEF. Tesla fell from ninth to 18th place.

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