KEY POINTS

  • German authorities shut off the water supply at Tesla's Gigafactory in Berlin
  • The company failed to pay a water development contract on time
  • Water is crucial for producing concrete and other building materials needed at the construction site

German utilities shut off the water supply at Tesla’s Gigafactory Berlin for failing to pay its water bill.

According to Germany’s RBB 24, Tesla and utility company Strausberg-Erkner (WSE) signed a “water development contract.” The agreement tasked the water association with securing more than 383 million gallons of water and 251 million gallons of wastewater disposal for the construction site.

The payment was reportedly due by Oct. 14. However, Tesla failed to make a deposit, forcing the WSE to turn off their water supply Thursday. A spokesperson for WSR refused to reveal how much the company owed but said that late fees would begin to accumulate starting Friday.

The utility company also revealed that Tesla had been given several warnings, but WSE did not receive any response. A water association spokesperson said the company would not be treated differently despite their prospective impact on the local economy.

Telsa ceased all construction work at the site due to the water being cut. Water is crucial for producing concrete and other materials they need for the construction.

“Tesla is temporarily unable to continue building its factory in Grünheide near Berlin. The Strausberg-Erkner water association turned off the water because Tesla did not pay the money, said association spokeswoman Sandra Ponesky on Thursday in Strausberg,” Heise reported.

The American electric vehicle company is expected to start production at the Gigafactory in Berlin in July 2021, which means the company has a strict construction timeline to be ready for the production and launch of the Model Y in Europe.

This is not the first time the project has faced a significant interruption. In January, people working at the construction site accidentally unearthed nearly 800 pounds of unexploded bombs dropped by the U.S. during World War II, according to Reuters.

Bomb disposal experts found seven bombs from World War II. Each dud weighed 110 pounds each, which meant they posed a severe threat to the construction workers and the surrounding area. Tesla suspended construction while bomb experts collected and defused the bombs.

In February, hundreds of locals joined together to protest over site deforestation. Their demonstration failed to disrupt construction.

Tesla Gigafactory 3 as of August 2019
Tesla Gigafactory 3 as of August 2019 Tesla Inc.