Tesla's Berlin Gigafactory Eyes Resumption After Arson Incident

Tesla's German gigafactory near Berlin, which faced a forced closure due to an arson attack, may see a faster-than-anticipated resumption of operations, offering relief to the electric vehicle (EV) giant. E.DIS, a division of German energy network firm E.ON, reported today that ongoing repair work on the sabotaged electricity transmission tower is progressing swiftly, raising the possibility of power restoration as early as Monday evening.

The incident occurred less than a week ago when an anti-fascist group, identifying themselves as "Vulkangruppe" or "Volcano Group," set fire to a nearby power pylon. The group accused Tesla CEO Elon Musk of being a "technofascist" and criticized the company's practices, drawing sharp responses from Musk himself.

Tesla, losing an estimated US$65.6 million in sales per day during the shutdown, had initially aimed to resume operations on Monday. However, due to complications in repairing the damaged tower, production was anticipated to be halted until the end of the week. The gigafactory typically produces 375,000 Model Y SUVs annually, constituting a substantial financial setback for the company.

Alexander Montebaur, managing director of German energy supply company E.DIS, expressed optimism regarding the repair progress, stating on LinkedIn that if Monday's work proceeds as planned, Tesla's facility might regain power in the evening.

Gigafactory Berlin-Brandenburg's senior director, Andre Thierig, estimated the incident could cost a "high nine-figure amount" if resolved by Monday. This disruption, coupled with other challenges, led Deutsche Bank analysts to predict that Tesla's first-quarter earnings might fall short of Wall Street expectations.

The far-left Vulkangruppe claimed responsibility for the arson, accusing Musk of supporting colonialism and exacerbating the climate crisis. Musk, in response, called the perpetrators "the dumbest eco-terrorists on Earth" or "puppets of those who do not have good environmental goals."

Despite these setbacks, Tesla has faced challenges from local residents opposing its plans to expand the gigafactory, including a rejected proposal for a rail freight depot due to environmental concerns.

E.DIS highlighted that the resumption of power supply hinges on a high-voltage test and official approval by engineers, both expected to occur on Monday. Once power is restored, Tesla aims to gradually restart its systems, though the exact timeline for full production resumption remains uncertain. The outage has halted Tesla's production of around 1,000 cars daily.

Joerg Steinbach, the economy minister in Brandenburg, noted that E.DIS employees are working in a three-shift mode to expedite power restoration, expressing optimism that the process may conclude sooner than initially anticipated.