Tesla's Berlin factory may stop production due to the situation in Russia and Ukraine.

Published: Apr 8, 2022 13:23
[Tesla Berlin factory or stop production due to Russian-Ukrainian situation] according to media reports, due to the situation in Russia and Ukraine, the German government may consider embargoing imports of Russian natural gas, and this move may cause Tesla's Berlin plant to stop production. After months of delay, Tesla finally received final approval for the Berlin plant to start production in February this year. However, the good times will not last long, and sanctions against Russia could lead to the suspension of production at Tesla's German factory.

According to media reports, due to the situation in Russia and Ukraine, the German government may consider embargoing imports of Russian natural gas, which may lead to the suspension of production at Tesla's Berlin plant in Germany.

After months of delay, Tesla finally received final approval for the Berlin plant to start production in February this year. However, the good times will not last long, and sanctions against Russia could lead to the suspension of production at Tesla's German factory. Benjamin Raschke, head of the Green Council group in Brandenburg, said that if Germany decided to ban imports of Russian natural gas, Tesla's Berlin plant would have to be closed because it relies on natural gas for 60 per cent of its energy needs.

"if Russia cuts off natural gas supplies to Germany, then the limited natural gas will be given priority to German hospitals and schools, and the government will give priority to consumers and citizens," Raschke said. "and companies like Tesla, which runs large industrial projects, may have to stop production in this case."

Earlier this week, German economy Minister Robert Habeck said Germania, the German subsidiary of Gazprom Gazprom, would be held in custody immediately. "the government is taking the necessary measures to ensure the security of Germany's energy supply, including preventing Germany's energy infrastructure from being affected by any arbitrary decisions made by the Kremlin," Habeck said.

Germania was raided by EU antitrust officials last week after the EU launched an investigation into rising natural gas prices. In response to this move, Russia may cut off natural gas supplies to Germany overnight.

Tesla is not the only company that will be affected. A chemical plant in Schwarzhead and a cement plant in R ü dersdorf may also suffer losses.

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