Tesla plant in Germany: shock, damage and shutdown after attack on power supply

On Tuesday morning, an extremist network called “Volcano Group” set fire to an electricity pole around ten kilometres from the Tesla site, causing the Gigafactory and six surrounding communities to lose power. As a result, the Tesla plant was evacuated, and production has been at a standstill ever since. Further details can be found here. While the power supply in the communities was restored after just a few hours, it was not the case for the 12,000-employee factory.

Around midday, the left-wing extremist network published a letter claiming responsibility. Police have now confirmed the authenticity of the latter, adding that they are not (yet) calling it an attack. “We are still talking about deliberate arson,” a police spokeswoman said Wednesday.

Plant manager André Thierig stated that he does not expect production to resume this week. Tesla is suffering economic damage in the high nine-digit range as a result. Around 6,000 cars per week are coming off the production line in Grünheide. If one takes only the base price for a Model Y of approximately 45,000 euros as a benchmark, Tesla could lose 270 million euros in sales due to the attack. The disruption to the supply chain will also result in additional costs. According to German Manager Magazin, trucks are already queuing in front of the factory.

Added to this is possible damage to factory equipment due to the abrupt power failure. For example, Tesla’s large casting presses are vulnerable, and removing any cooled liquid material from inside them will be difficult. It is unknown whether Tesla used emergency power to stop certain production processes in a controlled manner at the time of the blackout.

When asked about this, plant manager Thierig told Manager Magazin: “I can’t say at this point whether this will have an impact on the further expansion of the factory.” In a LinkedIn post published yesterday evening, André Thierig spoke of a bad day for the Gigafactory in Grünheide and for the communities “that were affected by the terrorist attack on the power grid.” As soon as the repairs to the grid have been completed, “we will restart with all our might! We will not be defeated!”

Tesla CEO Elon Musk responded in a blustering and defiant manner: “These are either the dumbest eco-terrorists on Earth or they’re puppets of those who don’t have good environmental goals. Stopping production of electric vehicles, rather than fossil fuel vehicles, ist extrem dumm” (extremely dumb), he tweeted.

A separate tweet from Tesla Manufacturing said: “We stand firmly with our employees, the people of Grünheide and the surrounding area, and all those affected by this anti-Tesla arson attack on the public power grid.” The safety of the more than 12,000 Tesla employees is the company’s top priority, and it is glad that no one was injured in this attack. “In addition to us, many other people in the region are affected by the power outage, and we condemn this reckless attack.” And: “We assume that the law enforcement authorities and courts will hold those responsible to account. We are sincerely grateful for the great support from all parts of Germany and the world and condemn violence in any form.”

The political leadership of the federal and state governments are also concerned. Brandenburg’s Minister President Dietmar Woidke (SPD) said yesterday that it was “obviously a serious attack on our critical infrastructure with consequences for thousands of people and many small and large businesses in our state.” Attacks on critical infrastructure are “a form of terrorism.”

In a tweet, Brandenburg’s Minister of Economic Affairs Jörg Steinbach (SPD) speaks of an “escalation that cannot be tolerated in any way and which is causing people, employees and companies in the region to suffer.” He also wants to increase safety at the plant. “What is possible will certainly be intensified,” the politician previously said at a press conference at the Tesla plant. “We have looked at where critical infrastructure is.”

Federal Interior Minister Nancy Faeser (SPD) also used strong words: “Such an attack on our electricity infrastructure is a serious criminal offence that cannot be justified by anything.” Federal Economics Minister Robert Habeck called for a swift investigation and consequences: “Violence and sabotage must not be a means of conflict,” said the German vice-chancellor.

The attack on the power supply occurred at a time when the plant expansion in Grünheide is being finalised. Tesla plans to build a freight depot, warehouses and a company kindergarten on an additional 170 hectares alongside its 300-hectare factory site. The plans were made public in 2022. In mid-February, however, the majority of Grünheide residents rejected the expansion of the plant site in a referendum. The vote was about these new areas, but Tesla also aims to expand the plant on the existing factory site. However, the latter was explicitly not put to the vote.

handelsblatt.com, manager-magazin.de, automobilwoche.de (all in German)