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Tesla Giga Berlin cleared of water supply concerns as state government begins infrastructure planning
Tesla takes a step closer to begin construction of Giga Berlin in Grunheide as Brandenburg authorities announce initial plans to spend 100 million euros on infrastructure development around the facility. Additionally, the Agriculture and Environment Minister Axel Vogel confirmed during a parliamentary committee on Wednesday that there’s a secure water supply for the entire region, thereby eliminating one of the biggest risks that would have delayed construction of Tesla’s first European factory.
Local residents, business owners, and environmental groups initially sounded the alarm about water, in fear that the California-based electric carmaker’s plans for a large production facility will dry up their local water supply. Tesla plans to initially produce 150,000 electric vehicles annually at Giga Berlin and will eventually ramp up to 500,000 units per year.
Responsible water association Strausberg / Erkner (WSE) addressed the community in a meeting last week, noting that they can meet the water supply needs of the Gigafactory in Grunheide but need additional funding. According to Vogel, WSE supplied about 10.8 million cubic meters of water in 2018 and the government can stretch that to the approved framework of 16 million cubic meters. Tesla’s Giga Berlin will only need about 1.77 million cubic meters of water per year.
“The evaluations will be completed this week and then the approval notice will be issued, there is no reason to be worried that Tesla cannot be supplied with sufficient drinking water,” Vogel said.
In January, Tesla CEO and co-founder Elon Musk also chimed in on the water supply issue and clarified that Giga Berlin is designed with sustainability and the environment in mind.
Giga Berlin / GF4 will absolutely be designed with sustainability and the environment in mind
— Elon Musk (@elonmusk) January 25, 2020
With Water Issues Solved, Government Thinks of Infrastructure
As Tesla Giga Berlin gains momentum with the assurance of the Brandenburg government that there’s enough water supply for the factory and for the rest of the community, authorities have announced plans to spend 10 million euros this year on roads and railway connections. Another 90 million euros will be allocated next year for various infrastructure projects around the car factory and a total of one billion euros would be spent by 2030.
Minister of Transport Guido Beermann disclosed plans for the electrification of the railway siding and an extension or relocation of the Fangschleuse train station.
There are also talks about the expansion of state roads, bus line networks that will serve commuters to Grunheide, and the extension of the S-Bahn, the city’s rapid railway system, to Grunheide.
Tesla enthusiast Emil Senkel has provided a clear illustration of these plans:
being examined:
– electrification of the railway siding
– possible extension of the S-Bahn to Grünheide
– bus lines networksplanned:
– new link parallel to the railway line between the motorway and L23
– extension or relocation of the existing train station
– 4-lane extension pic.twitter.com/R5ElDHJUzY— Emil Senkel (@EmilSenkel) February 13, 2020
With the influx of people expected when Giga Berlin goes online, the government is also planning to spend 30 million euros for new dormitories in nearby areas, 50 million euros for the renovation of dormitories, and 52 million euros for the rehabilitation of municipal bridges and bike lanes.
Environmental Protection Measures
As Tesla completes the necessary requirements to move forward with the construction of its facility in Brandenburg, the carmaker announced the steps it’s taking to ensure all measures are taken to protect the environment. Tesla will put up around 400 nesting boxes for birds breeding in the area and relocate several nests of forest ants. As planned, the carmaker will also search the forest for hibernating bats, forest lizards, and other creatures that need to be moved.
Tesla plans to start production of vehicles at Giga Berlin by July 2021. The factory is expected to employ around 8,000 to 12,000 workers to help with the production of the Model 3 sedan, the Model Y crossover.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
