The high-end electric vehicle maker’s acceleration could be disrupted by an unexpected obstacle.
This is news that must undoubtedly frustrate Tesla (TSLA) – Get Tesla Inc Report and its CEO Elon Musk.
After the successful official opening of the Berlin gigafactory, the electric vehicle maker thought it had done the hardest part of its ramp-up in terms of production volumes to meet demand.
But now there is a setback where Musk and Tesla didn’t think it could happen. Tesla and Musk have planned a ‘GigaFest’ on April 7 for the opening of the Austin, Texas factory. This factory, the group’s fourth, was built smoothly. Tesla even plans to relocate to the state from California.
Fierce Opposition
The automotive group is now facing opposition from environmental activists against this full-scale seduction operation which should bring together 15,000 people invited by Tesla to celebrate the new factory.
Paul DiFiore, an Austin resident and representative of the environmental group PODER, said Tesla hasn’t done enough to engage with the community during the move.
“I urge you to consider rejecting this permit and forcing Tesla to delay their celebration until they start treating the community of Eastern Travis County as more than a workforce for Elon Musk, but rather as neighbors and partners,” he said during a hearing that took place on Tuesday, according to local reports.
Some local residents say they fear the noise and fireworks that this giant rave party may cause in the neighborhood. But the fireworks may be canceled if the weather is not ideal.
Other residents wonder about the aid given to Tesla, and more particularly about the $65 million in tax rebates that the company will get from Travis County.
But the authorities have rejected all these criticisms.
“They are targeting for the majority of their 5,000-plus jobs the people in Austin who have less than a college degree, and that’s more than 50% of our population,” Commissioner Brigid Shea responded.
“Those are the people who are stuck in dead-end jobs, who don’t have health insurance, who don’t get retirement, who don’t really have a ladder out of poverty. And I think this is a genuine opportunity and an important one for our community that will provide many, many benefits.”
Contacted by TheStreet, Tesla, which has no press and communication department, did not respond.
‘Conditional Permit’
Tesla had not anticipated this last-minute opposition because everything had always gone well, from the granting of the site construction permit to the warm reception of the local authorities.
The site will house a vehicle development plant, and more particularly the Model Y SUV, and a battery development plant, the heart of the electric car.
On Tuesday, the company obtained the permit for the event.
“Staff recommend approval of this item,” Travis County commissioners Court said.
“The conditional permit was unanimously approved by the Travis County Commissioners Court,” a spokesperson for Travis County Judge Adam Brown told TheStreet by email.
Tesla has not yet sent the invitation cards.
The $1.1 billion, 4.3-million square foot facility started producing the Model Y, Tesla said during its fourth quarter earnings in January.
The event on April 7 is being promoted as a one-day event on April 7, 2022, between 4 p.m. to 11:29 p.m. local time, according to Travis County, which encompasses Austin.
It will encompass interactive tours accompanied by food and various live entertainment to celebrate the newly built and operational Giga factory.
Tesla has submitted the preliminary permit application and applicable backup documentation. The company has been coordinating with individual departments for several weeks to address department-specific requirements according to county guidelines.
These events are part of Tesla’ s communication plans. The firm does not spend a penny on advertising unlike its rivals, as TheStreet Rob Lenihan wrote. The events participate in creating a myth around the Tesla brand.
One of Musk’s great skills is giving the impression that when you drive in a Tesla, you are living a unique experience. You only have to look at Tesla’s market capitalization to measure its enormous success.
The manufacturer of electric vehicles created in 2003 has a valuation that is over $1 trillion. No other automotive company comes close to these numbers.
The manufacturer had given a foretaste by organizing a similar event on October last year, in its Berlin factory.
