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Tesla submits its application to build batteries at Giga Berlin
Tesla has officially submitted amended application documents to build electric vehicle battery cells at its German production plant, Giga Berlin.
On June 3rd, the Ministry of Agriculture, Environment, and Climate Protection (MLUK) announced that Tesla changed its application for the construction and operation of the Giga Berlin production facility. The changes were primarily due to the addition of the plan to produce electric vehicle battery cells on-site.
#Tesla hat geänderten Antrag u. a. mit Batteriezellenherstellung, Presswerkerweiterung & reduziertem Wasserverbrauch eingereicht. #LfU #Brandenburg wird nach Prüfung des Antrags über Öffentlichkeitsbeteiligung entscheiden; Auslegung ist wahrscheinlich.
?https://t.co/0sAH3WeyHq pic.twitter.com/9gRcnU5CuT— MLUK Brandenburg (@MLUKBrandenburg) June 3, 2021
Tesla has planned for Giga Berlin to become another battery manufacturing site for its electric cars for some time now. Since the facility was announced in late 2019 by CEO Elon Musk, Giga Berlin remains as somewhat of a hub for Tesla’s entire European operation. The vehicles built at the facility will not only be given to the citizens of Germany but the vehicles will be exported across the continent to help alleviate the demand that Tesla has obtained over the past few years. Europe remains as one of the most heavily-concentrated regions for electric vehicles, and Teslas, in particular, are highly popular in several countries, including Germany, France, Norway, and others.
Along with the demand for its vehicles, Tesla needs to continue to expand its battery production operation. In Germany, the company will install a “corresponding auxiliary device for vehicle production,” according to the MLUK press release regarding the matter.
The MLUK release says:
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“The production of battery cells is now also to take place on site – for this purpose, a corresponding auxiliary device for vehicle production is requested. In addition, the application contains an expansion of the press shop with two more press lines, which should serve to expand the vertical range of manufacture in the plant.”
Tesla will manufacture its 4680 lithium-ion cells at Giga Berlin. The new, revolutionary cell was unveiled at Tesla’s Battery Day event in September 2020 and will give vehicles more range, power, and performance than its previously used 2170 batteries. Initially, Tesla will send cells from its Kato Road 4680 production lines in Northern California to Berlin.
EXCLUSIVE: Tesla Giga Berlin isn’t facing a 6-month delay: German Minister
Tesla also outlined a reduction in planned water consumption at the plant. Water consumption was one of the more talked about issues by local environmental groups, but Tesla plans to utilize significantly less water than previously estimated.
MLUK adds:
“In addition, the application contains various measures to reduce water consumption, so that despite the expansion of the plant, water consumption will probably continue to be around 1.4 million cubic meters per year and the expected amount of wastewater will be around 925,000 cubic meters per year.”
The Licensing Authority will decide whether the public should be involved in the decision-making process. Within the next few days, this will be decided.
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Tesla slates its initial production phases for Giga Berlin at the end of 2021. Economic Minister of Brandenburg Jörg Steinbach expects production to begin by late-Summer or early-Autumn. As of now, the Model Y will still be the first vehicle produced in Germany at the Giga Berlin plant.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
