Tesla's German Factory Paralyzed: Arson Attack Causes Week-Long Power Outage

The EV manufacturer is expecting massive losses.

Tesla's German plant, located near Berlin, is facing a complete electricity outage until the end of next week, attributed to a suspected arson attack that left the facility powerless. A pylon near the factory was damaged in a fire, and German police have confirmed receiving a letter from a far-left group claiming responsibility, deeming it authentic.

The Tesla EV plant has been a focal point for climate protesters opposing its construction. Elon Musk, Tesla's CEO, labeled the attack "extremely dumb," raising concerns among businesses about the vulnerability of electricity supplies. Some advocate for changes to the country's grid to enhance security against power losses.

Tesla electric cars stand outside the Tesla Gigafactory on March 07, 2024 near Gruenheide, Germany. Tesla has announced that it is suspending production at the Gruenheide factory until the end of next week due to the recent sabotage of an electricity pylon that is connected to the plant. A leftist activists association called the "Vulkan Group"("Vulkangruppe") has claimed responsibility for the sabotage. (Photo : Sean Gallup/Getty Images)

Incident Will Not Cause Significant Impact on Business

Clemens Fuest, President of Germany's IFO business institute, downplays the alarm, stating, "What happened is an exception." He suggests that a shift to a new strategy by terrorist groups would warrant further discussion. However, investor confidence remains largely unaffected, given the scarcity of such infrastructure attacks.

Tesla anticipates significant financial losses due to the Tesla Germany Gigafactory stoppage, with around 1,000 cars left unfinished on Tuesday alone. This setback compounds existing challenges for the company, grappling with weakened demand. Morgan Stanley and other banks recently downgraded estimates for Tesla's car deliveries this year, citing weak sales in China and highlighting the impact of the German factory fire on future deliveries.

Tesla Cuts Ties with Major Auto Lobby in Australia

In Australia, Tesla cut relations with the Federal Chamber of Automotive Industries (FCAI), the main car lobby organization. Tesla cited the FCAI's "demonstrably false claims" concerning the Albanese government's clean vehicle agenda as the reason behind its decision.

In a letter to the FCAI, Tesla expressed reservations about the lobby group's public assertions that the proposed vehicle efficiency standard would significantly increase the prices of popular cars and utilities while reducing the prices of Tesla models, per The Guardian. Tesla accused the FCAI of representing only car companies seeking to delay climate crisis action and excluding those supporting the Labor Party's stance.

Tesla urged the FCAI to publicly correct these alleged "false claims" and called for an investigation by the Australian Competition and Consumer Commission into the lobby group's assertions. The company plans to withdraw from FCAI membership after the 2023-24 financial year. The FCAI defended its stance, emphasizing its decade-long advocacy for an efficiency standard and its members' commitment to combating climate change.

On a different note, TechTimes earlier reported on Elon Musk's one-word response on social media that hinted at the potential arrival of the Tesla app on the Apple Watch. The Tesla CEO gave a straightforward "Sure" in response to a Tesla owner's request after she found herself locked out of her vehicle due to her iPhone's battery running low. While no further details were provided, the porting of the iPhone app to the Apple Watch is considered feasible, given Apple's swift adaptation of iPhone apps to watchOS.

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