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Tesla factory delays show ‘how we stand in our own way’: German industry experts sound off
Water pumping approvals. Bats in trees. An empty tank. These are just a few things that have stopped Tesla’s progress in Germany as it attempts to launch its first electric vehicle manufacturing facility in Europe. It has been a long and trying road for the electric automaker, which has attempted to surf through the waves of German bureaucratic red tape since early 2020. After another delay in the approval process, which has expected production start dates ranging across three quarters, industry experts challenge Germany’s reputation as a place for companies to conduct business.
“Tesla shows the world how we stand in our own way,” Ferdinand Dudenhöffer, Director of the Center of Automotive Research, said. While Dudenhöffer does agree that Tesla should have treaded more carefully during the approval of a battery production facility and been smarter regarding document submissions, the industry expert believes that German red tape has mainly told a story of how hard it is to get things started if you are planning to open a business in the country. “But such hurricanes of resistance show how little sustainable Germany is,” he said in an interview with Handelsblatt.
Coverage of the Gigafactory Berlin project has spanned over two years for journalists in the sector, including myself. Musk announced that Tesla would bring a production facility to Germany in late 2019 while accepting an automotive industry reward. The project began just months later, in the early days of January 2020. More than two years later, a factory, a parage, a carnival, and a lot of speculation regarding when Tesla will finally receive the green light still exist. Earlier this week, German media reported that Tesla would likely not receive permission to begin production and deliveries until mid-March “at the earliest.” It is a far cry from the Summer 2021 start dates that many close to the project anticipated.
The delays are starting to worry those who see Germany as a potential leader in the future automotive industry, which over the past ten years has changed more than it did in the previous ninety. Car companies are not just about making cars anymore. They’re relatively closer to tech companies than anything due to the advancements in software and the widespread focus on developing autonomous driving platforms. Regardless of what a company brings to the table, they will likely have to encounter some major pushback and delays in their project. Even EV leader Tesla is having problems. Dudenhöffer wonders which companies are observing the red tape and the pushback, thinking that other options may be better.
Giga Berlin’s new graffiti panels as of early February 2022. (Credit: @Gf4Tesla/Twitter)
It isn’t just companies, either. Dudenhöffer says that the renewal of motorway bridges can take years or even decades to be rebuilt completely due to new approval procedures. It is not about getting things done quickly, it seems.
When things as simple as bridge repairs are taking over ten years to complete, there has to be an indication that the processes for planning and approval need to be revised. That is what Chief Executive Holder Loesch said, who encouraged the agencies responsible for approving projects to take a look at refining the approval steps. Loesch, whose association is overseeing the installation of wind turbines and industrial plants to double by 2030, says that his plans will include the submission of around 20,000 permits during the course of action. “This mammoth task can only be mastered with a comprehensive reform of planning and approvals that includes processes for industrial plant structures,” he said.
Even Brandenburg Economics Minister Jörg Steinbach submitted ideas to help expedite potential approvals. Driven by the lagging approval process in the Tesla project, Steinbach said that “It should be possible to make changes to the building plan in the ongoing approval process without the process having to be completely restarted.”
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Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
News
Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.
The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.
Model 3 and Model Y lead their respective segments
As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.
Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win.
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Euro NCAP leadership shares insights
Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.
Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.
“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
Tesla Model 3 and Model Y dominates U.S. EV market in 2025
