By Sam Boughedda
Investing.com -- Tesla Inc. (NASDAQ:TSLA) has received authorization to initiate commercial production at its new factory in Berlin, according to local German officials.
The factory will be Tesla's first gigafactory in Europe. However, previously, there were months of delays in gaining approval for the plant in Brandenburg.
Tesla is expected to begin vehicle production in 2021, but various issues such as the pandemic, supply chain challenges, and legal and administrative difficulties with environmentalists halted progress.
Locals and environmentalists did everything they could to stand in the way of the plant, with complaints about destroying the natural habitat and raising concerns regarding the factory's water demand as the area suffered droughts in recent years.
The plant, located southeast of Berlin, is expected to produce 500,000 vehicles a year.
In a press conference, Brandenburg officials called the approval a success.
However, according to a report from CNBC, the approval doesn't mean Tesla is able to begin production immediately. According to the report, it is subject to a public objection period and other final inspection conditions.
Tesla shares are down around 1% Friday.