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Tesla Giga Berlin seems on track to start Model Y production later than Giga Texas
In a recent statement to German media, Brandenburg Economics Minister Jörg Steinbach stated that he expects the final approval for Tesla’s Gigafactory Berlin facility to be released sometime in the fourth quarter of 2021. If this comes to pass, Model Y production in the facility would be starting several months or so later than expected, which may not seem like too much of a delay. It may, however, result in Gigafactory Texas, a facility that started its buildout several months after the Germany-based factory, starting its Model Y production earlier than its Germany-based sibling.
As per a report from Berlin.de, Steinbach stated that the principle of quality over speed applies in the approval process of Gigafactory Berlin. “The principle of quality over speed clearly applies in the approval process. The top priority is that the decision of the State Office for the Environment is ultimately legally secure. And the factory can only be opened once a positive approval decision has been made,” the minister said.
If the State Environment Agency refuses to grant Gigafactory Berlin’s final approval, Tesla would have to dismantle all the structures it has built on the massive Grünheide complex, which includes a plant designed to produce the Tesla Model Y. Tesla would also have to replace the monoculture forest that it cut down in the area. Steinbach, however, noted that he considers a final veto from the Environmental Agency to be practically impossible. “This is not about the approval of a new nuclear power plant,” he said.
Inasmuch as Giga Berlin is supported by the Economics Minister, there is no denying that the project is meeting a substantial amount of pushback from local entities. Legal challenges from the Naturschutzbund (Nabu) and the Green League over Giga Berlin’s latest early approval aside, Tesla is also being investigated by the Brandenburg’s State Environment Agency for allegedly constructing a refrigerant tank (which may still be empty) without permission. The complaints about Giga Berlin’s alleged “illegal” tanks were filed by the two environmental groups, and are cruelty being handled by the Berlin-Brandenburg Higher Administrative Court (OVG).
Similar issues have so far not plagued Gigafactory Texas. Since its announcement on the Q2 2020 earnings call, Giga Texas’ construction has been relatively smooth. It’s been roughly 350 days since the massive Texas-based facility was announced, and so far, trial runs for parts of the plant’s Model Y production line are already underway. Elon Musk even noted on Twitter back in April that limited production of the Model Y would begin in Gigafactory Texas this year, with volume production hitting its pace in 2022.
What is quite interesting is that Gigafactory Texas’s footprint exceeds that of Gigafactory Berlin. Tesla adopted a different pattern for Giga Texas by building large sections of the full factory immediately, and so far, such a strategy seems to be working well. However, what truly differentiates the Texas plant from its Germany-based counterpart is the amount of pushback against the project as a whole. While Giga Berlin could barely move these days without encountering loud complaints and legal actions from the Naturschutzbund (Nabu) and the Green League — or local news agencies for that matter — Giga Texas has so far been met with support.
This is quite an unfortunate situation overall, as Gigafactory Berlin actually started out strong. Following its initial announcement in November 2019, Giga Berlin’s first months showed a lot of progress, so much so that it seemed like the facility may be built faster than Gigafactory Shanghai, whose Model 3 factory was built and launched in less than a year. But just like Giga Texas, Gigafactory Shanghai was also constructed without much drama. Since its groundbreaking in January 2019, Tesla’s China-based facility has grown steadily, and today, it is already poised to export the Made-in-China Model Y to European territories.
Tesla opened orders for the Model Y in Europe recently, and the all-electric crossovers would likely be coming from Giga Shanghai. One could almost assume that Tesla opted for this strategy due to the delays in Giga Berlin. The Grünheide facility, after all, was initially expected to start Model Y production sometime in the latter half of 2021. But if Brandenburg’s Economics Minister optimistically believes that Giga Berlin’s final approval would be granted in the fourth quarter, then having Giga Shanghai’s Made-in-China Model Ys pick up the slack may indeed be a good idea.
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In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).
This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.
Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:
- Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
- All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
- While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
- NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.
As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.
Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.
“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”
The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.
Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.
The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.
Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.
🚨 Tesla said this morning it will ramp up production at Gigafactory Berlin to a volume of 7,500 vehicles per week.
This is a 20 percent boost in production. Tesla will hire 1,000 new employees to help with the increase.$TSLA pic.twitter.com/kravKfRO5n
— TESLARATI (@Teslarati) June 25, 2026
Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.
Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.
In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.
This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.
Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.
One of Tesla’s biggest threats just got banned in the U.S.
Tesla Cybercab stands to gain from new Trump autonomy rules
