Tesla’s European Gigafactory near Berlin faced a production halt and power outage following a suspected arson attack on an electricity pylon near the site early Tuesday, emphasizing a latest setback for the U.S. electric vehicle maker’s operations in Europe.
While the blaze was promptly extinguished by firefighters and did not reach the Tesla facility, production was suspended, and the site evacuated, as confirmed by a Tesla spokesperson.
Shares of Tesla listed in Frankfurt experienced a 2.5% dip following the incident.
Local media disseminated a letter purportedly from a far-left activist group, the Volcano Group, claiming responsibility for the attack in a scathing 2,500-word diatribe against Tesla and its CEO Elon Musk.
Referred to as “Agua De Pau,” the letter’s signature evokes a volcanic mountain in the Azores. While police acknowledged the letter, they are in the process of verifying its authenticity. The incident marks a continuation of challenges faced by Tesla in Europe, including union demands for collective bargaining agreements in the Nordics and supply disruptions due to Red Sea shipping attacks.
The suspected arson attack prompted a response from local authorities, with Brandenburg state Interior Minister Michael Stuebgen denouncing it as a “perfidious attack” on the region’s electricity infrastructure.
Stuebgen warned of severe consequences, emphasizing the potential danger posed to thousands of residents cut off from essential services. Investigations into the incident are ongoing, with police exploring potential leads in the area surrounding the plant, which has been a focal point of environmental protests since its inception by Musk two years ago.
Tesla’s expansion plans at the Gigafactory have encountered resistance, notably with a recent referendum where local residents voted against clearing trees for enlarging the facility. Despite setbacks, Tesla aims to double the site’s capacity for battery production and car manufacturing, positioning itself to dominate the European market. However, environmental activists have staged protests, occupying tree houses in anticipation of forest clearance for the expansion. While the plant’s production ramp-up has faced delays, Tesla achieved a milestone in January by producing 6,000 cars in a week for the first time.