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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.
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“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.
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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.
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.
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.
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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
