Reuters said that the local government ministry near Tesla Inc’s (NASDAQ: TSLA) gigafactory in Berlin permitted it to keep building the first part of the three-part expansion amid local protests on Tuesday.
What Happened: The approval would let the electric vehicle maker continue constructing infrastructure for storage facilities, a battery cell test laboratory, and logistics areas, the report said. All the construction would be on land owned by the company.
The firm has been granted permission despite local opposition. Locals, who were protesting the plan to raise the plant’s vehicle manufacturing capacity to a million units a year, have previously raised environmental concerns.
In May, some protesters attempted to storm the factory of the company and even managed to injure some policemen during the clashes.
During the incident, the police have detained several of the protesters. In March, the factory came under an arson attack, cutting off its power supply and shutting down its production for nearly a week.
The activist Vulkan Group claimed to have carried out the attack, saying it was an environmental protest.
Tesla did not immediately return a request for comment from Benzinga.
Why It Is Important: The European Automobile Manufacturers’ Association, or ACEA, reports that through August 2024, Tesla’s new car registrations in Europe fell by around 15% to 152,607 units. New car registrations decreased last month by 43% compared to the same period the previous year.
Tesla Inc TSLA reported 462,890 vehicles produced worldwide in Q3, 6.4% more than a year ago but below whisper numbers, and the company’s stock is on a falling trajectory. Price Action: On Tuesday, Tesla’s shares closed up 0.3% at $219.57. According to data from Benzinga Pro, the stock was down 11.6% year-to-date.