Tesla Giga Berlin is the electric automaker’s first European production facility, and it is slated to begin production of the Model Y crossover later this year. However, reports out of Germany indicate that Tesla’s German EV manufacturing facility is poised to be delayed six months due to numerous constraints that deal with battery pack output. However, Brandenburg Economic Minister Jörg Steinbach, who has been one of Tesla’s most vocal supporters in their quest to open the German facility, isn’t buying the six-month delay story at all. Steinbach still believes Tesla is on pace for a late-Summer or early-Autumn start at Giga Berlin.
The delays at Giga Berlin are not unfamiliar territory for those who have been following the site’s development over the past 18 months. After being announced by Elon Musk in late 2019, Tesla started land preparations in January 2020, only to begin erecting the mainframe of the facility just a few months later. The site has been subjected to numerous short-term delays due to the COVID-19 pandemic and some application holdups that needed preliminary approval before Tesla could move forward. However, recent reports from Germany suggest a more long-term delay is in store for Tesla because battery pack output won’t allow for vehicle production.
“I don’t have the faintest idea of how anyone can come up with a six-month delay. If nothing happens out of the ordinary, I still expect a start of production in late Summer or Early Autumn.”
-Jörg Steinbach, German Economic Minister, State of Brandenburg
Many outlets have cited Automobilwoche’s story that says the German manufacturing plant won’t become operational until January 2022. The article indicates that company circles close to Elon Musk state the CEO is accepting the January 2022 date, even though just last week during the Q1 2021 Earnings Call, Musk said that limited production would occur at both Giga Berlin and Giga Texas this year.
Musk said:
“We’re building factories as quickly as we can. Both Texas and Berlin are progressing well, and we expect to have initial limited production from those factories this year and volume production from Texas and Berlin next year.”
(Credit: @gigafactory_4)
Steinbach not buying Giga Berlin delay stories
Now that the report has been in the loop for a few days, plenty of people are finding out that Giga Berlin is apparently facing the six-month delay. One of the people disagreeing with those reports is Brandenburg Economic Minister Jörg Steinbach, a well-known politician who has been ecstatic regarding Tesla’s entry into the German economy. Steinbach told Teslarati earlier today that he doesn’t know where the six-month delay rumors are culminating from. Still, he expects Giga Berlin to face “approximately three months” of delay time.
“I don’t have the faintest idea of how anyone can come up with a six-month delay,” Steinbach said to Teslarati in an interview. “If nothing happens out of the ordinary, I still expect a start of production in late Summer or Early Autumn,” the Economic Minister added.
While Tesla has expressed some frustration with the German approval process, it is not unordinary for things to take several years to earn ultimate approval. Teslarati spoke to German engineer and Tesla enthusiast Alex Voigt last week, who indicated that many projects take 3-5 years to gain ultimate approval.
It appears that the basis of the delays seems to be blamed on a delay in 4680 cell production in Berlin, but the German factory’s battery line was not supposed to support the initial vehicle production efforts in the first place. Tesla’s Kato Road facility in Northern California sits just a stone’s throw away from the Fremont factory where Tesla has manufactured its cars since 2012. This is where Tesla is refining and developing the 4680 battery cell, which differs greatly from the batteries that Tesla currently uses in terms of power and performance, and it will support Tesla’s initial efforts in Berlin, according to Drew Baglino, the company’s Senior VP of Powertrain and Energy Engineering.
“We will incorporate 4680 design solutions into many applications in time across both energy and vehicle and we can use our pilot production facility in Fremont to support the new factory in Berlin as it ramps,” Baglino said during the Q3 2020 Earnings Call.
The delays at Giga Berlin could be confused with something as simple as an extended timeline, as Tesla’s addition of its 4680 battery cell manufacturing line to its application was submitted just last week. The additional portions of the application require more deliberation from regulators.
“If this additional investment now flows into the permit application, it goes without saying that the application documents must be revised, and then the approval authorities have the last word,” Dietmar Woidke, Brandenburg’s Prime Minister, said.
Tesla is still planning for Giga Berlin to begin production and deliveries this year, as it indicated in the most recent Update Letter that timing remains “on track for late 2021. Machinery for paint, stamping, castings, etc., continues to be moved into the building. In the meantime, we will continue to increase import volumes to Europe.”
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.
Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
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