News
Tesla formally wins final environmental approval to open Gigafactory Berlin
The wait is finally over. After a long process that saw delays, controversies, and other drama, Tesla Gigafactory Berlin has won its final environmental approval from Germany. An official document confirming the update was published by the State of Brandenburg, outlining the next steps that the electric vehicle maker needs to do to start vehicle production in its Germany-based electric vehicle factory.
As per the state’s press release, the approval for Giga Berlin covers several activities, such as the production of up to 500,000 vehicles per year. The approval also includes battery cell production activities within the Giga Berlin complex, which should allow Tesla to manufacture its in-house cells from within Germany.
“The project, which was approved with the 536-page decision, includes the plant for the production of up to 500,000 vehicles per year, aluminum smelting plants and an aluminum foundry, plants for surface treatment, heat generation, and storage. The facility also includes battery cell production, an operational wastewater treatment plant, a fire brigade equipment house, a high-bay warehouse, as well as laboratories and workshops,” the press release read.
It should be noted that while it may have taken two years to get to this point, Gigafactory Berlin’s formal approval was still completed in a quick manner, at least relatively speaking. The past two years, after all, required the State Office of the Environment to not only inspect and approve the factory itself, but also the entire industrial area with several large-scale facilities. Environment Minister Alex Vogel expressed his thanks to the state’s employees and other authorities for Giga Berlin’s quick approval process.
“As a high-performing state administration, you have always focused on the technical requirements, the high level of protection of the environment, the protection of the general public and the neighborhood from dangers, even under the pressure of great public interest and unreasonable harassment as well as the legal certainty of the procedure. In times of climate crisis, the availability of water will play an increasingly important role for future developments and settlements. Above all, digitization can help to simplify and accelerate processes without restricting environmental standards and participation rights,” Vogel said.
District Administrator Rolf Lindemann emphasized that Giga Berlin benefits the region. The fact that the project faced much adversity, and was still able to achieve a milestone such as a final environmental approval in a relatively short time, proves that the project’s potential is vast. He also noted that Giga Berlin, as well as those that have been working with Tesla over the past two years to approve the project, shall face whatever challenges lie ahead with vigor.
“The Oder-Spree district described the Tesla Gigafactory as a real stroke of luck for the development of our region. We have therefore mobilized all our strength to help turn this unique opportunity into a visible success. It wasn’t always easy, and we’re anything but done when it comes to the final form of the overall project. But we all have reason to be proud of what we have achieved so far, despite all prophecies of doom.
“That is why we will face the further challenges that lie ahead with confidence and with undiminished vigor. I am referring to the official support of the further expansion stages, the completion of the battery factory and of great importance, especially for local politics: as far as possible, a stress-free integration of the Gigafactory into the traffic infrastructure . However, in order to be able to meet the sustainability aspect and smooth mobility in connection with production, it is of course necessary to start building housing close to the location and to create the associated social infrastructure. We trust in the same support from the state government that we have been able to rely on in the past,” Lindemann said.
While Giga Berlin’s final environment approval has been secured, Tesla still has to ensure that it meets the state’s requirements. These are highlighted by the mammoth size of its approval documents, which comprise over 23,700 pages in 66 files. More than 400 ancillary provisions are included, involving topics such as requirements for groundwater protection as well as water-saving and wastewater-reducing measures, species protection measures, limit values for air pollutants and regulations on their measurement as well as occupational safety requirements. Other specific rules on the plant’s operations, particularly with regards to how it affects the area’s groundwater, were also highlighted in the press release.
“There are 113 air pollution control requirements, which include respective chimney heights for each exhaust air stream. In addition, 22 requirements determine the methods and intervals at which the exhaust air is to be measured. 96 requirements for drinking water protection, waste water disposal and rainwater specify, among other things, limit values for discharge into the waste water pressure line and corresponding cleaning processes. When using building materials, it is important to ensure that no harmful substances get into the groundwater. With groundwater monitoring, both the formation of new groundwater and the quality of the groundwater must be checked regularly. In view of the tense water situation, not least due to climate change, it should be possible to react to changes as early as possible.
“After the inspection by the approval authority, the entire system falls under the provisions of the Hazardous Incidents Ordinance (12th BImSchV) and must therefore take special precautions to prevent incidents and limit the effects of incidents, as well as maintain an appropriate safety distance from adjacent protected objects. Tesla must draw up an incident concept and comply with special information obligations,” the press release read.
The state noted that Tesla may now start or continue with the further construction of Giga Berlin and that objections to the project now have “no suspensive effect.” It should be noted, however, that before Tesla can actually put its Model Y production facility into operation, several ancillary provisions must be met first. These provisions, which include the installation of measuring devices for air pollutants and precautions for fire protection and accidents, will be checked by the responsible authorities. Once Tesla completes this step, Model Y production for customer vehicles could finally commence.
Needless to say, all eyes are now focused on how quickly Tesla can meet the requirements for Giga Berlin’s operational permit.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla is going to let you guide Full Self-Driving with Grok in 3 months, CEO Elon Musk confirmed on X.
The response from Musk, which revealed Tesla plans to allow drivers to effectively control the car and its navigation more explicitly using Grok, puts the feature for about September.
A Tesla owner said that Full Self-Driving is great, but owners should be able to “converse with Grok like we can with an Uber driver.” She then used examples like, “Grok, turn right here,” and “Drop us off right here, we’ll walk due to traffic,” and finally,” Drop at entrance first, then park far away.”
Coincidentally, the final piece of dialogue would also mean features like Banish are potentially on the way soon.
This functionality will be there in about 3 months or so
— Elon Musk (@elonmusk) June 18, 2026
Banish is also referred to as “Reverse Summon,” and would enable the car to self-park while dropping occupants off at their destination.
This would be a great way to improve the overall experience while supervising FSD. Navigation is already a major painpoint that many owners complain about. Manual overrides when a maneuver is requested or canceled (like using the turn signal stalk to override a navigation route), do not always work.
The feature could be especially useful in street parking scenarios in a city, where spots are sometimes tough to come by. Many of us who grab dinner in a more populated area will park a street or two over from wherever we’re going, because sometimes you know that’s the best you will get. If a driver using FSD could say, “Hey Grok, turn right here on Queen St. and park in that open spot on the right,” it could save a lot of confusion FSD might have on its own.
Musk teased that a similar feature was “coming” back in February:
Tesla Full Self-Driving set to get an awesome new feature, Elon Musk says
It is certainly surprising that Tesla is doing it at this point. The company’s more recent moves have been more evident of taking control and inputs away from humans and putting them in the AI’s hands more frequently. The biggest example of this was taking away Max Speed in AI4 cars, giving us Speed Profiles, and not having any input on the fastest speed the car will travel.
Of course, giving navigation preferences to Grok is availble already in Teslas, but not at the drop of a hat. Instead, you can suggest a certain route at the beginning of your drive.
Here’s an example of that from December:
🚨🏈 I am taking my parents and Fiancee to the @Ravens game next weekend and asked @Grok to help me route my @Tesla through a specific neighborhood to reach the correct Lot we will park in.
This is a great example of the new @grok nav integration with the Tesla Holiday Update: pic.twitter.com/rPp4I7q8Yv
— TESLARATI (@Teslarati) December 13, 2025
Finally, the original post that Musk responded to mentioned a parking preference after dropping off the occupants, which describes the Banish feature that Tesla has teased for years.
We’re not sure if Musk was responding more to the ability to guide the car with Grok, or whether he also was including Banish in the three-month prediction timeframe.
Elon Musk challenges Tesla credit rating from Moody’s after SpaceX gets a higher one
Tesla faces Full Self-Driving pushback in EU over ‘speeding’
