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 Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
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