Key Takeaways
- Tesla was forced to halt production at a factory outside Berlin on Tuesday after a fire—suspected to have been set by arsonists—at a nearby electricity pylon cut off power to the plant and surrounding area.
- Tesla’s efforts to double the output of its Gigafactory Berlin-Brandenburg have sparked protests from residents and environmental activists.
- The electric vehicle maker’s stock was down nearly 4% in early afternoon trading and has now lost more than a quarter of its value since the start of the year.
Tesla (TSLA) shares slid Tuesday after the electric vehicle maker was forced to halt production at its Berlin factory following a suspected arson attack on a nearby electricity pylon.
The fire, which occurred in a field near Tesla’s Gigafactory Berlin-Brandenburg in Grünheide, cut off power to the plant and the surrounding area. The factory was evacuated and workers were sent home.
The attack comes amid local opposition to Tesla’s efforts to expand the factory, its only assembly plant in Europe. Tesla last July filed applications with local authorities to expand the plant, with plans to add a battery testing center and water treatment facilities. Tesla hopes the plant will eventually produce 1 million cars a year, about double its current output.
But it has run into resistance from locals and environmental activists. Late last month, Grünheide residents voted against Tesla’s planned expansion in a non-binding vote. And last week nearly 100 activists set up camp in a forest near the factory that Tesla intends to fell as part of its expansion.
Residents and activists have also expressed concern about the factory’s water consumption. Tesla has assured locals the expanded factory will recycle water rather than draw on more of the region’s resources. The company has also offered to drill for new water sources to win local support.
Tesla shares were down 3.8% at $180.99 at around 12:40 p.m. ET. The stock, which dropped more than 7% on Monday following news that deliveries from its Shanghai Gigafactory had fallen to their lowest point in more than a year, has lost more than a quarter of its value this year.