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Tesla Gigafactory Berlin construction still on track despite pandemic: official

Tesla Giga Berlin rendering (Source: Emil Senkel | Twitter)

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Tesla’s Giga Berlin production facility in Brandenburg, Germany, is set to begin construction without any significant delays, according to German Economy Minister Peter Altmaier.

Tesla started developing the land in Berlin in early January 2020 after CEO Elon Musk announced last November that the company had chosen Berlin as the location to house its newest Gigafactory. The facility will be starting its operations by producing the Model Y crossover for the European market.

German Economy Minister Peter Altmaier said on Monday that he did not expect any significant delays to occur at the electric automaker’s first European production plant, Reuters reported. The company’s anticipated completion date of July 2021 was put into jeopardy after the COVID-19 pandemic delayed some land development processes, along with the expected initial construction phases of the factory itself.

However, Altmaier explained that he does not believe any major delays will occur because of the pandemic. Tesla plans to begin building its cars, starting with the Model Y, its newest electric vehicle, in Berlin in Summer 2021.

Altmaier has been a vocal supporter of Tesla’s presence in Germany since the company announced its intentions to set up its next Gigafactory in Berlin.

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“The construction of the Tesla automobile plant in Brandenburg has been of great importance for more climate protection and one of the most important industrial settlements in the new federal states for a long time,” Altmaier said in March.

Tesla has made substantial efforts to stay on its schedule, and German politicians have offered a helping hand in the process.

In late April, Brandenburg’s Minister of Economic Affairs Jörg Steinbach stated that some of Germany’s local government agencies are willing to prolong exemptions that are usually required by Federal Law to help Tesla stay on track. These include a public forum for residents to voice concerns about a new business or construction project.

Staying on schedule with the construction of the facility is crucial to the company’s future. The demand for Tesla’s vehicles continues to grow across the globe. In Germany, in particular, Tesla enjoyed an extraordinarily successful April despite the entire automotive sector struggling as a result of the coronavirus pandemic.

Giga Berlin will employ 12,000 Germans, and Tesla plans to produce  500,000 vehicles at the plant every year. The massive size of the factory also suggests that Tesla may be preparing to build not only the Model Y on the site, but perhaps some energy storage products as well.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla kicks Robotaxi geofence expansion into high gear in Austin

Tesla has nearly doubled its Robotaxi geofence in Austin for the second time less than two months after it initially launched.

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Credit: @AdanGuajardo/X

Tesla has kicked the expansion of its Robotaxi geofence in Austin, Texas, into high gear, as it grew the service area once again early Sunday morning.

Tesla launched its Robotaxi platform in Austin on June 22, and less than a month later, it was able to expand it. After its first expansion, Tesla had a larger geofence than Waymo, which launched its driverless ride-hailing service to the public in Austin in March. Waymo expanded the week after Tesla’s first augmentation.

Waymo responds to Tesla’s Robotaxi expansion in Austin with bold statement

Now, Tesla has answered Waymo once again by developing its service area in Austin to an even larger size. We expected it, as just two weeks ago, CEO Elon Musk said that the company would be growing the Austin geofence, but did not give an indication by how much.

The first geofence in Austin was roughly 20 square miles. On July 14, when the first expansion took place, Tesla Robotaxi riders had roughly 42 square miles of downtown Austin available for travel.

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On the morning of August 3, Tesla nearly doubled the geofence by growing it to roughly 80 square miles, according to Grok. For reference, Waymo’s current service area in Austin is about 90 square miles:

The expansion further extends the Southern portion of the geofence, going into suburban zones such as Barton Creek.

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The continuous growth shows Tesla is prepared to extend its geofence in basically any direction. Now that it is going into suburban areas, we may get to see more Austin residents experience Robotaxi for an entire evening of activities, including pickup and dropoff at home.

The only question that remains is how much Tesla can expand at one time. The company seems to have the ability to push the geofence to a majority of Austin, but it maintains that safety is its biggest priority.

The company was spotted testing vehicles in the West Austin suburbs in areas like Marble Falls recently, indicating that Tesla could be expanding its service area to hundreds of square miles in the coming months.

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Tesla to appeal jury verdict that held it partially liable for fatal crash

Tesla will appeal the decision from the eight-person jury.

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tesla showroom
(Credit: Tesla)

Tesla will appeal a recent jury verdict that held it partially liable for a fatal crash that occurred in Key Largo, Florida, in 2019.

An eight-person jury ruled that Tesla’s driver assistance technology was at least partially to blame for a crash when a vehicle driven by George McGee went off the road and hit a couple, killing a 22-year-old and injuring the other.

The jury found that Tesla’s tech was found to enable McGee to take his eyes off the road, despite the company warning drivers and vehicle operators that its systems are not a replacement for a human driver.

The company states on its website and Owner’s Manual that Autopilot and Full Self-Driving are not fully autonomous, and that drivers must be ready to take over in case of an emergency. Its website says:

“Autopilot is a driver assistance system that is intended to be used only with a fully attentive driver. It does not turn a Tesla into a fully autonomous vehicle.

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Before enabling Autopilot, you must agree to ‘keep your hands on the steering wheel at all times’ and to always ‘maintain control and responsibility for your vehicle.’ Once engaged, Autopilot will also deliver an escalating series of visual and audio warnings, reminding you to place your hands on the wheel if insufficient torque is applied or your vehicle otherwise detects you may not be attentive enough to the road ahead. If you repeatedly ignore these warnings, you will be locked out from using Autopilot during that trip.

You can override any of Autopilot’s features at any time by steering or applying the accelerator at any time.”

Despite this, and the fact that McGee admitted to “fishing for his phone” after it fell, Tesla was ordered to pay hundreds of millions in damages.

Tesla attorney Joel Smith said in court (via Washington Post):

“He said he was fishing for his phone. It’s a fact. That happens in any car. That isolates the cause. The cause is he dropped his cell phone.”

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In total, Tesla is responsible for $324 million in payouts: $200 million in punitive damages, $35 million to the deceased’s mother, $24 million to their father, and $70 million to their boyfriend, who was also struck but was injured and not killed.

The family of the deceased, Naibel Benavides Leon, also sued the driver and reached a settlement out of court. The family opened the federal suit against Tesla in 2024, alleging that Tesla was to blame because it operated its technology on a road “it was not designed for,” the report states.

Despite the disclosures and warnings Tesla lists in numerous places to its drivers and users of both Autopilot and Full Self-Driving, as well as all of its active safety features, the operator remains responsible for paying attention.

CEO Elon Musk confirmed it would appeal the jury’s decision:

The driver being distracted is a big part of this case that seemed to be forgotten as the jury came to its decision. Tesla’s disclosures and warnings, as well as McGee’s admission of being distracted, seem to be enough to take any responsibility off the company.

The appeal process will potentially shed more light on this, especially as this will be a main point of emphasis for Tesla’s defense team.

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Elon Musk echoes worries over Tesla control against activist shareholders

Elon Musk has spoken on several occasions of the “activist shareholders” who threaten his role at Tesla.

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Credit: xAI | X

Elon Musk continues to raise concerns over his control of Tesla as its CEO and one of its founders, as activist shareholders seem to be a viable threat to the company in his eyes.

Musk has voiced concerns over voting control of Tesla and the possibility of him being ousted by shareholders who do not necessarily have the company’s future in mind. Instead, they could be looking to oust Musk because of his political beliefs or because of his vast wealth.

We saw an example of that as shareholders voted on two separate occasions to award Musk a 2018 compensation package that was earned as Tesla met various growth goals through the CEO’s leadership.

Despite shareholders voting to award Musk with the compensation package on two separate occasions, once in 2018 and again in 2024, Delaware Chancery Court Judge Kathaleen McCormick denied the CEO the money both times. At one time, she called it an “unfathomable sum.”

Musk’s current stake in Tesla stands at 12.8 percent, but he has an option to purchase 304 million shares, which, if exercised, after taxes, he says, would bump his voting control up about 4 percent.

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However, this is not enough of a stake in the company, as he believes a roughly 25 percent ownership stake would be enough “to be influential, but not so much that I can’t be overturned,” he said in January 2024.

Musk’s concerns were echoed in another X post from Thursday, where he confirmed he has no current personal loans against Tesla stock, and he reiterated his concerns of being ousted from the company by those he has referred to in the past as “activist shareholders.”

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Elon Musk explains why he wants 25% voting share at Tesla: “I just want to be an effective steward of very powerful technology”

The CEO said during the company’s earnings call in late July:

“That is a major concern for me, as I’ve mentioned in the past. I hope that is addressed at the upcoming shareholders’ meeting. But, yeah, it is a big deal. I want to find that I’ve got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots. I think my control over Tesla, Inc. should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy.”

The X post from Thursday said:

There is a concern that Musk could eventually put his money where his mouth is, and if politicians and judges are able to limit his ownership stake as they’ve been able to do with his pay package, he could eventually leave the company.

The company’s shareholders voted overwhelmingly to approve Musk’s pay package. A vast majority of those who voted to get Musk paid still want him to be running Tesla’s day-to-day operations. Without his guidance, the company could face a major restructuring and would have a vastly new look and thesis.

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