Tesla Factory in Berlin Evacuated After Arson Attack on Energy Infrastructure Causes Power Outages in Surrounding Areas

Tesla’s stock is expected to face more declines amid ongoing challenges, including negative news and the broader weakness in tech stocks. The recent production halt at Giga Berlin due to an arson incident, coupled with disappointing Q1 delivery figures that fell short of expectations, are key factors contributing to the downturn. With a 7% dip in the previous session and an additional 1.97% drop in premarket trading, the stock now sits at $184.43. Analysts are forecasting further reductions in earnings estimates for 2024.

Tesla’s German factory temporarily stopped production on Tuesday due to assailants reportedly setting fire to high-voltage lines nearby, leading to a power outage at the US electric carmaker’s sole plant in Europe, according to both the company and authorities.

Tesla says production has come to a halt at its German plant due to a power failure, emphasizing uncertainty about when operations can resume.

The Vulkan activist group has issued a letter on the Kontrapolis website, asserting their involvement in the alleged Tesla “sabotage.”

Environmental activists targeted Tesla’s car factory in Grünheide, Germany, turning a peaceful protest into a violent act.

The attack involved setting fire to the Umspannwerk Steinfurt near the Tesla factory, causing a power outage in the factory, the town of Erkner, and parts of Berlin.

The entire Tesla factory, with 12,500 employees, was evacuated as a result of the arson attack.

On Tuesday, a blaze ignited at an electricity pylon close to Tesla’s German facility, leading to a power outage in the area. This power disruption resulted in a production standstill at Tesla’s sole European factory, potentially incurring losses amounting to millions.

Bomb disposal units were called in due to a discovered eco-activist tent with a warning sign about buried explosives, leading to a bomb scare.

The bomb disposal process may take hours, keeping the Gigafactory non-operational during this period.

In a separate incident a week earlier, around 100 Tesla opponents occupied a forest near the factory, building treehouses, with police allowing the occupation under strict conditions until March 15.

Tesla’s plans to expand its plant, capable of producing around 500,000 cars annually, faced obstacles when local residents rejected a proposal to cut down trees for enlargement.

The U.S. EV manufacturer aims to double the site’s capacity to 100 gigawatt hours of battery production and 1 million cars per year, positioning itself for dominance in the European market.

Elon Musk on Tesla Germany factory fire says “stopping production of electric vehicles, rather than fossil fuel vehicles, ist extrem Dumm”

Govt Response: The German government spokesperson strongly condemns the attack on Tesla. Regarding the impact of the Tesla outage, they caution against alarmism, emphasizing the criminal nature of the incident and the importance of relying on existing laws.

The head of Tesla’s Berlin factory states that a production outage is anticipated to incur a cost exceeding 100 million euros.

Update

Security officials cleared the Tesla site on Tuesday after what Chief Executive Elon Musk called an “extremely dumb” suspected arson attack nearby. “The plant is expected to be without electricity until the end of next week,” a spokesperson for the company told Reuters, confirming a report by Bild newspaper.