Tesla Will Temporarily Stop Production At German Gigafactory: Here's Why

Zinger Key Points
  • Tesla Giga Berlin has faced pushback from activist groups as the company looks to expand the facility.
  • Upcoming protests see Tesla temporarily halting production at the facility.

Activist groups in Germany are targeting electric vehicle (EV) manufacturer Tesla Inc TSLA as it works to expand its Giga Berlin factory.

What Happened: The Austin, Texas-based car company faces upcoming protests at Giga Berlin and is taking preventative measures, including a four-day closure, according to German business newspaper Handelsblatt.

The shutdown comes as a result of announced multi-day protests against Tesla.

As a result, Tesla employees are being told to work from home. An email sent to employees on Monday shared the company's decision, according to the report.

Employees in vehicle production will see Friday a bridge day. Production is ending with the late shift on Wednesday and will begin again with the night shift on Sunday.

"No access to the site or the factory is possible without the explicit instructions and approval of your manager," an email obtained by Handelsblatt reads.  

Tesla also said there would be no buses or trains running to the gigafactory in Germany from Thursday through Sunday.

The company said the move was done as "the corresponding recommendation from the responsible authorities."

Related Link: Tesla Q1 Earnings Highlights: EV Giant Misses Wall Street Estimates, Makes Cost Cuts, Invests In AI, Speeds Launch Of New Models

Why It's Important: Tesla influencers dispute the accuracy of the four-day closure report.

Tesla delivery vehicle tracker Troy Teslike said that Thursday is a public holiday in Germany (Ascension Day) and the factory is typically open Monday through Friday.

"This production pause is only for 1 day (Friday)," Teslike said. "It won't affect deliveries because Model Y inventory in Europe is at an all-time high due to limited demand."

Tesla influencer Sawyer Merritt called an article from Reuters citing the four-day work pause as misleading.

"This headline is a little misleading. Giga Berlin usually produces cars Monday-Friday. This Thursday is a Holiday, so really it's just a one-day shutdown," Merritt tweeted.

News of the work pause and the work-from-home orders come as Tesla CEO Elon Musk has famously been an outspoken critic of employees working from home.

The CEO has called work from home "morally wrong" and has made it mandatory for Tesla and social media platform X that employees work in office except in limited scenarios.

While the work stoppage could end up being only one day due to the holiday, it bears watching as an arson attack led to the plant temporarily shutting down in Germany.

Protestors are expected to convene in front of the factory on Friday. The goal is to raise awareness for the clearing of a forest area by Tesla if it expands the factory. The expansion has faced pushback and the protest could bring more attention to the concerns raised against Tesla's move to grow.

Read Next: Tesla Lays Off More Employees Over Weekend: Report

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