Mar 7 2024: Tesla’s German Plant Faces Prolonged Power Outage After Suspected Arson Attack
In a recent development, Tesla has disclosed that its German plant is likely to remain without electricity until March 17th following a suspected arson attack that rendered the gigafactory near Berlin powerless, resulting in a halt in production.
Security measures were swiftly implemented at the Tesla (NASDAQ:TSLA) site on Tuesday subsequent to an alleged arson attack in the vicinity, which CEO Elon Musk criticized as “extremely dumb.”
Confirming a report by Bild newspaper, a Tesla spokesperson informed Reuters that the plant’s power outage is anticipated to persist until the end of next week.
The repercussions of this incident are substantial for the U.S. electric vehicle manufacturer, with projected financial losses amounting to hundreds of millions of euros. Furthermore, approximately 1,000 vehicles were left unfinished as of Tuesday.
E.DIS, a subsidiary of grid operator E.ON, is actively working on a provisional solution to repair the damaged pylon responsible for the outage, with the objective of restoring power to the site as soon as feasible. However, no specific timeline has been provided for this restoration.
Tesla shares experienced a decline of 2.6% at 1650 GMT in response to this news.
According to Baird Equity Research, Tesla’s first-quarter deliveries are anticipated to witness a significant decrease, partly attributable to the suspected arson attack. The revised estimate stands at 421,100 deliveries, contrasting with Wall Street’s projection of 489,000.
Security Concerns and Infrastructure Protection
The Tesla plant has been a target for climate protesters opposing its planned expansion.
In light of this incident, advocates within the German industry have emphasized the necessity for heightened protection of critical infrastructure. They assert that such protection is pivotal in safeguarding the investments essential for stimulating growth in Europe’s largest economy, currently facing recessionary pressures.
Martin Wansleben, managing director of the DIHK Chambers of Industry and Commerce, stressed the vital role of infrastructure as the backbone of the German economy. He emphasized the urgent need to adapt infrastructure protection measures to the evolving security landscape, highlighting cybersecurity as a significant concern.
Both RWE and E.ON, operators of crucial German energy infrastructure, reiterated their commitment to prioritizing safety and security.
While cautioning against undue alarmism, the government acknowledged the imperative of bolstering security measures. German police have indicated that a letter purportedly from a far-left organization known as the Volcano Group, claiming responsibility for the fire that caused the power outage at Tesla’s factory, is genuine.
In a 2019 report, Berlin authorities identified Vulkangruppen, or volcano groups, as left-wing extremist organizations known for targeting cable ducts, railway lines, and occasionally radio masts, data lines, or company vehicles.
