Local citizens near Tesla Inc's (NASDAQ:TSLA) Berlin Gigafactory have reportedly voted against the EV giant's intentions to cut trees to make space to expand its factory and subsequently production.

What Happened: A local vote rejected the proposal to clear trees for the expansion of Tesla's German plant, Reuters reported, citing the mayor of Gruenheide.

This vote, although not binding, poses a significant challenge to Tesla's plans to double the plant's capacity for battery production to 100 gigawatt hours and car production to 1 million units annually.

The rejection of the proposal to clear the forest for additional logistical facilities such as a train station and warehouses leaves the decision in the hands of local authorities, the report added.

According to Tesla's 2023 full-year report, Tesla's Berlin factory has a currently installed annual vehicle capacity of 375,000 Model Y SUVs. Earlier this month, it was reported that Tesla likely touched a weekly production of 6000 Model Y vehicles at the factory.

German automaker Volkswagen was the most popular vehicle choice in the European Union in 2023, followed by Chrysler parent Stellantis NV.

Tesla, meanwhile, had 279,042 new car registrations over the year in the region, up 89% year-on-year, according to data from European Automobile Manufacturers' Association.

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Photo courtesy: Tesla