Tesla Inc (NASDAQ:TSLA) shares closed over 7% higher on Monday amid German reports that the electric-vehicle maker will soon be granted permission to start commercial production near Berlin.
The ‘Gigafactory Berlin,’ which is based in Grünheide, Brandenburg, intends to make more than half a million cars per year, CNBC said, citing Tagesspiegel and Der Spiegel.
The factories will also produce batteries for the cars as well as creating a minimum of 12,000 jobs.
IG Metall, one of the most powerful trade unions globally, was chosen by the factory workers as the “works council,” according to Der Spiegel.
Tesla chief executive Elon Musk previously clashed with employees when they tried to introduce union membership at the company in American factories.
Local environmental groups will meet on Friday at a court hearing to suggest that Brandenburg authorities failed to thoroughly conduct reviews before awarding the local water utility company a contract with Tesla, CNBC added.
The groups will argue that the new factory would use the same amount of water as a 30,000-person town.
“If environmental groups win, then Tesla will need to wait for the water utility to negotiate with local authorities over where they can source the volume of water needed to run Tesla’s new factory,” said the reports.