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Tesla Pushes Back Berlin Gigafactory Opening to October

Tesla, waiting for German regulators to approve its Berlin plant, has delayed opening it to late 2021, a media report says.
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Tesla  (TSLA) - Get Free Report Chief Executive Elon Musk now expects to produce vehicles at its gigafactory outside Berlin in October or a bit later, a media report says.

Reuters reported that the Palo Alto, Calif., electric-vehicle producer has pushed back the factory's opening date, citing German bureaucracy. The plant also faces opposition due to environmental issues, the news service reported. 

The plant was initially expected to open in July. Work on the plant started in early 2020.

Tesla hopes to have final approval from German environmental agency Brandenburg soon, with Musk saying the plant could see approval for manufacturing cars "maybe in October if we are fortunate," Reuters reported. But that October opening also could be in jeopardy. 

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In May, Reuters reported that Tesla was ramping up its engagement with German regulators amid a broader crackdown on technology companies and the collection of customer data. 

Bloomberg reported in April that officials in China banned Tesla vehicles from military bases and housing compounds due to concerns about potentially sensitive data from the vehicles' onboard cameras being collected and stored on Tesla servers. 

Tesla has been pushing to expand internationally and has relied on its Shanghai factory to meet global demand for its vehicles outside the U.S.

In July, Tesla reported non-GAAP earnings for the three months ended in June of $1.45 a share, more than triple the year-earlier figure and ahead of the Wall Street consensus forecast of 98 cents a share. 

Group revenue, Tesla said, rose 98% from the year earlier to a record $11.96 billion, ahead of analysts' consensus forecast of an $11.3 billion tally. 

Automotive gross margin was 28.4%, Tesla said, 3 percentage points higher than in the year-earlier period. 

Tesla shares at last check slipped 0.6% to $718.26.