03:16 PM EDT, 05/16/2024 (MT Newswires) -- Tesla's (TSLA) renewed bid to expand its European production facility was approved by the municipal council of the German town where the company builds its electric vehicles, Bloomberg reported Thursday, citing multiple news outlets in Germany.

The Grunheide municipal council voted 11-to-6 with two abstentions to allow a downsized version of the project to move forward, the report said.

The new plan includes expansion of 40 hectares (90 acres), an employee train station, and roads to reduce heavy traffic in the area, the report said, citing the town's mayor, Arne Christiani.

Tesla originally proposed clearing as much as 100 hectares of wooded area adjacent to its so-called "Gigafactory," with plans to double production capacity to nearly 1 million vehicles per year. But, it sparked protests from environmentalists and other local activists. In response, Tesla scaled back its expansion to around 40 hectares.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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