Tesla said to be sticking to July opening date for European factory

Tesla is sticking to its plan to start building its electric cars at a new German plant in July, industry sources told the dpa news agency.

Tesla aims to begin production of the Model Y crossover at the factory in Gruenheide, near Berlin, in the summer.

The plant will eventually have and annual capacity of 500,000 vehicles a year, also including production of the Model 3 and a possible compact hatchback designed for Europe.

Last month sources told Automobilwoche, a sister publication of Automotive News Europe, that Tesla faces a "massive delay" to its July target to begin production.

Tesla has not commented publicly on its schedule for the factory's production start, but on Feb. 2, CEO Elon Musk tweeted a link to a drone video (see above) of the plant, with the caption "Giga Berlin Progress."

The automaker is still awaiting the final environmental permit for the plant from the state of Brandenburg, with a decision possible by the end of March or early April.

Despite this, construction of the factory is already well advanced, with Tesla having overcome a number of regulatory hurdles surrounding the clearing of a forest and the erection of buildings.

Most recently, the company received approval from the Brandenburg's Environment Ministry for the installation of machinery.

Two early permits are still outstanding. One application, from early February, covers the removal of topsoil and site leveling, according to Brandenburg. Another application, from late February, is for the construction of underground pipelines.

Some conservationists and local residents are worried that the plant will be harmful for the environment, particularly for local drinking water and some protected species, including endangered reptiles.

These worries are still being examined by the local authorities.

The automaker was told earlier this month that the approval it has received so far means that it can work toward making the plant operational, but warned that "no cars will come to market from a factory that has not yet been approved."

In January, the European Union approved state aid to Tesla, BMW and other companies to help strengthen the bloc's position in the race to produce more electric vehicles.