Gigafactory 4 land purchase delayed, Brandenburg governor optimistic on Model Y 2021 production start
Brandenburg, Germany: Today’s meeting of the Parliamentary Finance Committee for the Tesla Gigafactory 4 purchase has been canceled which further delayed the contract signing date of the land purchase — the contract signing was estimated to happen before Christmas but does not look like the case anymore.
The reason for this delay has been caused by Tesla’s reluctance to sign the purchase agreement on the current terms set by the Brandenburg government. The reason for dropping the meeting was stated as “Lack of a basis for decision-making”.
In short, the Brandenburg government wants Tesla to restore the land back to its original state if the U.S. based automaker decides to forfeit the factory building plan at an early stage, Tesla is trying to avoid any high costs in such a situation, reports German newspaper Bild.
Brandenburg government was expecting Tesla to provide the signed purchase agreement last week but that did not happen and it resulted in the cancellation of today’s meeting — the 300-hectare Gigafactory 4 land is the state’s property.
Minister-President (Governor) of Brandenburg on the other hand still is optimistic that the Gigafactory 4 construction will start on time and the Tesla Model Y production will begin in 2021, quotes another German news source Maz-Online.
Maz-Online also added the following (Google translated):
Meanwhile, the property in Grünheide is still loaded with ammunition, according to MAZ information. Preparatory work to free the area from the remains has already started, said government spokesman Florian Engels. The clearing of the area of waste storage and ammunition remnants can take place at short notice and has “no influence on the time planning”.
According to Bild, the government says that the area can be cleared of waste and war ammunition in only six weeks, the newspaper also reported that the Brandenburg state government is also under pressure from the Federal government to close the deal as early as possible, the newspaper’s website stated:
Brandenburg is under pressure from the Federal Minister of Economics Peter Altmaier (61, CDU). He had told the “Tagesspiegel”: “If the plant does not come, it would be damage for all of Germany.” This strengthens Tesla and weakens the Potsdam negotiating position.
Hopefully, the issues will soon be resolved and this proves to be a smooth transition and a win-win situation emerges for both Tesla and Germany.
Drone footage of the Gigafactory 4 site has already started popping online, currently, it is a vast and dense forest, let’s see if Germany is able to cope up with China’s speed on building a Tesla Gigafactory, if yes, 2021 will see the first Model Y off the assembly line for sure.