Report: Construction on Tesla Berlin Gigafactory Again halted over non-payment

Tesla‘s (NASDAQ: TSLA) an upcoming production facility in Europe appears to have suffered another delay. Tech Electrek news site reported Friday, citing “reports coming out of Germany,” that the company has managed to stop the construction of its Gigafactory Berlin near its name capital.

The reason, apparently, is that the company did not pay a required security investment of $ 100 million to the State Office of the Environment of Germany on its demolition.

Tesla Y model on the road.

Tesla Y model, the first slated vehicle for production at the Gigafactory Berlin. Image source: Tesla.

According to Electrek, Tesla has not received full permission to build the facility, choosing to build the location with only incremental agreements. The website quoted a German newspaper The Zeit in his report on the situation:

Tesla already has a building permit, although the final building permit has not yet been obtained. If it is never implemented, Tesla or another company will have to demolish what has already been built. The financial security investment serves this purpose. The company has now extended an extension to January 4, 2021, to [make the] investment.

It was not clear why construction was halted if the company received the extension; apparently the original due date was 17 December.

If this dynamic is familiar, it should. In October, Tesla lost a similar payment, and local authorities closed the water supply to the project in response.

Tesla has not mentioned either the Electrek or The Zeit articles.

Any delay in the huge facility is sad news, but at this point Tesla has such hard fans as shareholders that it may not hurt investor sentiment so much. Nevertheless, those with an interest in the company should keep a close eye on how this situation develops.

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