- Tesla had to stop construction at Gigafactory in Berlin after failing to pay a 100 million euro security deposit on time, the German store Der Tagesspiegel reported.
- The environmental authority in Brandenburg has requested that the conditional work permits issued by Tesla be submitted by Thursday, the report said.
- According to the report, Tesla has requested an extension and now has until January 4 to make the payment.
- Tesla has faced a lot of blockages and heads with German environmental groups since announcing plans to build a massive plant outside Berlin.
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Tesla hit another hurdle as it ran to complete construction of the Gigafactory in Berlin.
Brandenburg State Environmental Authority has ordered the company to stop clearing trees and equip its paint shop after the electric vehicle maker missed a deadline to make a 100m-euro security deposit, it said on Friday. German socket Der Tagesspiegel.
Tesla had until Thursday to make or guarantee the payment of about 122 million dollars, which the state authorities requested as part of two conditional work permits granted to Tesla at the end of November and the beginning of December, according to the report. Seeing that it is currently operating without full approval, Tesla is building its own factory at its own financial risk, Der Tagesspiegel said, and the 100 million euros guarantee funds to reverse Tesla’s progress if the project is not approved.
The carmaker’s lawyers last Wednesday extended the deadline to January 15, claiming that Tesla was not given enough time to coordinate the payment, according to the report. The environmental authority gave Tesla until January 4, 2021 to come with the money – until then, the two permits are suspended.
Tesla did not respond to Business Insider’s request for comment.
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This is not the first time Tesla has had to stop construction in Germany for a missed payment. In October, a local utility provider shut down water service at work after Tesla failed to pay an outstanding bill.
The Gigafactory project has also met with strong opposition from German environmental groups, which dispute Tesla’s plans to clear 205 acres of pine trees. Earlier this month, Tesla was forced to temporarily suspend deforestation after two groups – the Green League and the Union for Conservation of Nature and Biodiversity – complained that the electric vehicle manufacturer was disrupting the habitats of lizards and hibernating snakes.
Tesla plans to start production at the factory in July 2021 and aims to increase production to 500,000 vehicles per year. CEO Elon Musk said the company will make Model Y crossovers and next-generation battery cells there.