The electric car maker has been stopped in its tracks, as plans to clear forest land outside Berlin, in order to make way for a new European car and battery plant, have been put on hold.
The court’s injunction, which is temporary and based on the proceedings of further hearings, is enough to stop all operations in building the Tesla factory.
Locals and environmentalists have insisted the factory poses a threat to wildlife and water supply in the local area. In addition, Germany's pro-business Christian Democrat and Free Democrat parties believe the factory’s establishment could damage Germany’s overall image as a place to do business.
Tesla was never strictly given approval to commence construction of the factory, though German environment authorities had approved permission to begin planning stages, at the company’s ‘own risk’.
The BBC reports that in a statement on Sunday, the court representing the Berlin and Brandenburg region cautioned: "It should not be assumed that the motion seeking legal protection brought by the Green League lacks any chance of succeeding."