The construction site of the gigafactory for electric car company,Tesla, is being visited by the company's founder and CEO, Elon Musk.
The German GIGAfactory, a massive electric carmaker's huge plant, is getting ready to open in the new year.
The Berlin-Brandenburg plant has been in development for over two years and although the investment and jobs boost has been praised by many, it has been impacted by several local disputes and oppositions.
A dispute over a water pumping facility in the region where the Gigafactory is located could affect the factory's operations.
A hearing on the matter was supposed to take place in the administrative court in Oder, but was postponed. The case relates to action taken by environmental groups against local authorities over the supply of water in the region, which would include pumping water to the facility. It is expected to consume large quantities of water, which has raised concern from some environmental groups.
CNBC requested comment fromTesla, but they did not reply.
The German facility is a vital component in the future of the company and is the latest development in a long winding saga.
Dan Ives, managing director at Wedbush Securities, told CNBC that Berlin is a linchpin to the broadening capacity plans ofTesla.
The factory needs to produce cars by early January if it is to get through the red tape.
The first of its kind in Europe, the Gigafactory will be located near Berlin and will be the doorstep of Germany's traditional auto industry giants.
Despite the disruptions of the Pandemic,Tesla moved ahead with construction quickly, but from the moment the first brick was laid, it faced local challenges and red tape. The expansion of the facility's scope to include battery cell production has drawn some criticism.
An internal report warned of potential accident risks during the summer. The company was fined for construction violations.
Up to 40,000 jobs are expected to be created over the next few years, thanks to the support the factory has received. The mayor of Grndheide called it a once-in-a-lifetime chance to boost the local economy.
The site of the future battery factory is east of Berlin.
The CEO of a company that is an investor in a company that has faced hurdles said to CNBC that he is not concerned. He said that the factory will open soon and that it is not a big concern.
We are bullish on the European markets and we are seeing a lot of demand forTesla.
The water supply issue is a frequent concern for some, as they have concerns over its potential environmental effects. Musk said there were plenty of water supplies in the region.
In its annual impact report for 2020, the company said that the new facility in Germany will result in further reductions in our water usage per vehicle, but acknowledged that water supply is a challenge due to climate change.
As the climate changes, water is becoming scarce. The report said that they are reducing their water usage as much as possible.
The number of trees being cut down around the German construction site has led to court action being taken byTesla and environmentalists expressing concern over the impact on native wildlife.
I think they underestimated the amount of bureaucracy that they would have to deal with. They did not expect to talk about cutting down trees for three months.
The impact of the German factory will be gradual but significant according to Pedro Pacheco, an automotive analyst.
He said that the most immediate difference is capacity, because customers in Europe don't need to wait for vehicles that come from China.
The Berlin facility would be crucial to the new models that are designed for the European market.
If you want to tap into talent in Europe, you have to come to Germany, it's the main one in Europe and one of the main automotive powers in the world.
The hunt for automotive and tech talent for the factory will be intense, as rivals like Volkswagen march on with their own EV production plans.
The automotive industry has been hit hard by the shortage of microchips and supply chain disruptions.
The chip shortage crisis will be felt by industries for at least the first quarter of 2022, according to CNBC.
I think it will be a challenge in the first quarter of next year, but I think we will get through it. Over the next year, I think it will be an issue that will be solved.
