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- Tesla had to halt construction of its Berlin gigafactory after failing to pay a € 100million deposit on time, German outlet Der Tagesspiegel reported.
- The environmental authority in Brandenburg, Germany, demanded the filing on Thursday as part of the conditional work permits it issued to Tesla, according to the report.
- According to the report, Tesla has requested an extension and now has until Jan.4 to make the payment.
- Tesla has run into numerous roadblocks and clashed with German environmental groups since announcing plans to build a massive factory outside Berlin.
- Visit the Business Insider homepage for more stories.
Tesla has run into another problem as it runs to finish building its Berlin Gigafactory.
Germany’s Brandenburg State Environmental Authority ordered the company to stop clearing trees and equipping its paint shop after the electric vehicle maker missed a deadline to post a bond of 100 million euros, the German store Der Tagesspiegel reported on Friday.
Tesla had until Thursday to make or guarantee the payment of around $ 122 million, demanded by state regulators under two conditional work permits issued to Tesla in late November and early December, according to the report. Because it is operating without full approval, Tesla is building its factory at its own financial risk, Der Tagesspiegel said, and the sum of € 100 million secures funds to reverse Tesla’s progress if the project is not approved.
Lawyers for the automaker asked at the last minute on Wednesday to extend the deadline to Jan. 15, saying Tesla did not have enough time to coordinate the payment, the report said. The environmental authority has given Tesla until Jan.4 to find the money – until then, both permits are on hold.
Tesla did not respond to Business Insider’s request for comment.
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This is not the first time that Tesla has had to stop construction in Germany due to a missed payment. In October, a local utility company shut down the construction site’s water service after Tesla failed to pay a late bill, the Associated Press reported.
The Gigafactory project has also met strong opposition from German environmental groups, who are challenging Tesla’s plans to clear 205 acres of pine trees. Earlier this month, Tesla was forced to temporarily suspend clearing after two groups – the Green League and the Union for the Conservation of Nature and Biodiversity – complained that the electric vehicle maker was disrupting habitats of hibernating lizards and snakes.
Tesla plans to start production at the plant in July and hopes to increase production to 500,000 vehicles per year. CEO Elon Musk said the company will manufacture Model Y crossovers and its next-generation battery cells there.
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