German Government Hits Tesla with $14 Million Fine

After a huge investment in Germany with the construction of Gigafactory Berlin and full support expected from the German government, Tesla is finding it self in hot water in the country yet again. The German government has hit Tesla with a $14 million fine over its battery end-of-life policy.

Tesla has been trying to win over Germany and its powerful automotive industry for quite some time now, but has seen hiccups along the way. Just a few months ago Germany banned Tesla from using its Full Self-Driving label stating the California-based company was using ‘misleading’ vocabulary when describing its drivers assistance technology. In recent months, the country also ruled Tesla’s wiper control through touchscreen illegal.

With the development of Giga Berlin and the German government declaring full support for the EV giant, it seemed as though the two were making strides in the relationship. However, Tesla has now confirmed it is fighting with German officials again, this time on how it handles the end-of-life of its battery products.

The automaker is currently fighting a 12 million euro (~$14 million USD) fine from the German Umweltbundesamt: “The German Umweltbundesamt (“UBA”) has issued our subsidiary in Germany a notice and fine in the amount of 12 million euro alleging its non-compliance under applicable laws relating to market participation notifications and take-back obligations with respect to end-of-life battery products required thereunder. This is primarily relating to administrative requirements, but Tesla has continued to take back battery packs, and although we cannot predict the outcome of this matter, including the final amount of any penalties, we have filed our objection and it is not expected to have a material adverse impact on our business.”

According to Tesla, it is fighting the fine as they believe the issue is purely administrative.

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