What is it this time?
On Friday, Tesla's stock rallied ahead of the company's admission to the S&P 500, closing at $695 per share and propelling the company's total market capitalization to about $660 billion - eleven times the market cap of Detroit-based rival General Motors, as of this writing.
And yet, as much as the company is thriving on the stock exchange, Tesla can't seem to keep on top of its Giga Berlin construction project, which has experienced numerous hiccups since construction first started earlier this year. First, the $660-billion automaker neglected to pay its water bill, prompting the Strausberg-Erkner Water Association to cut off water to the site last October. After that was settled, the company was ordered to stop clearing trees out of concern for the local wildlife.
Now, the company has been forced to outright stop construction because of another unpaid bill.
Specifically, Tesla has yet to surrender a $100 million deposit for the Giga Berlin project to cover the potentiality that the factory must be demolished, according to German outlet Die Zeit. The factory, which will help launch the new Tesla Model Y in Europe, is being built with partial approval only; should it fail to get final approval, it will need to be torn down - hence the $100 million deposit.
It's incredibly doubtful that Tesla doesn't have the money to cover the deposit. More likely, the missing deposit and the neglected water bill are both consequences of a construction project that's being carried out at a blistering pace. The company is aiming to have the factory operational by next summer.
When Tesla's Giga Berlin does start operations, it will build both batteries and vehicle models, including the company's cleverly packaged 4680 battery cells and a revised version of the Model Y that features innovations like a structural battery pack housing. Construction on the site started June, 2020 and a production start date in July, 2021 has been targeted.