Tesla receives an order from a German court to stop clearing forest land for its Gigafactory

Tesla Inc. has been excited about its first European factory dedicated to manufacturing electric cars and batteries in Berlin. As of Sunday, however, Tesla has been ordered by a German court to figure out an alternative for establishing its Gigafactory without clearing Berlin’s forest land. The court’s verdict was construed as a major victory for German environmental activists.

The U.S electric auto manufacturer declared in November that its first European Gigafactory will be established in Gruenheide, Brandenburg.

State Environmental Office Previously Gave Approval To Clear 92 Hectares Of Forest Land

The German court prohibited the company from cutting down trees despite a formal approval from the state environmental office for clearing 92 hectares of forest land to construct Tesla’s production house. Tesla, however, has not yet received the planning permission to build its facility. CEO Elon Musk initiated with preparing the ground on his own risk.

The court stated on Sunday that operations are to be suspended immediately as it would have taken an additional three days only for Tesla to clear out the rest of the forest land. Any further delays, as per the court, may have resulted in the completion of the land clearance before a final verdict could be announced. The issue was raised in court by a prominent local environmentalist group by the name of Gruene Liga Brandenburg that translates to Green League of Brandenburg.

The pro-business lawmakers, however, have expressed disappointment in the recent ruling citing a possibility that the litigation against Tesla’s factory will hurt Germany’s reputation as a reliable location for business in the long run.

Ruling Could Hurt Germany’s Reputation As A Prime Location For Business

The opposition to pro-business lawmakers, on the other hand, remains strong in Germany with hundreds protesting against the establishment of the Gigafactory and branding it as a threat not only to the local wildlife but also to the water supply. Currently, Tesla only has sone Gigafactory outside the U.S in China.

Tesla’s performance in the stock market didn’t budge following the German court’s ruling. At the time of writing, the stock is exchanging hands at $800 per share that marks an 85% growth for the U.S electric car maker in 2020 so far. Elon Musk is well regarded and respected as visionary across the globe that is mirrored in the fact that his company has gained over 340% in the stock market in the previous 8 months.