Tesla's plans to expand its German plant have hit a snag as residents voted against a proposal to clear trees for the project, according to the mayor of Gruenheide

speaking to Reuters on Tuesday.

Though the vote is not legally binding, it presents a significant hurdle for the U.S. electric vehicle manufacturer's ambitions to double the site's capacity to produce 100 gigawatt hours of batteries and 1 million cars annually, positioning itself as a dominant player in Europe's EV market.

The current capacity of the plant stands at around 500,000 cars per year, but its production ramp-up has faced delays. Tesla achieved a milestone of producing 6,000 cars in a week for the first time in January, following the achievement of 5,000 cars per week in March.

Residents of Gruenheide rejected the proposal on Tuesday to clear forested areas for additional logistical facilities such as a train station and warehouses, leaving the decision on how to proceed in the hands of local authorities.

Tesla has not yet provided a comment on the matter.