Tesla plans to expand production at German car plant

US electric car manufacturer Tesla is aiming to increase in production at its factory in Grünheide near Berlin in 2026, despite the difficult market situation in Germany.

Output already grew in each quarter of the past year as planned, plant manager André Thierig told dpa in a recent interview.

"We are therefore looking forward to the new year with optimism and expect a further increase," he said, describing the current situation as "stable."

According to the company, around 11,000 employees at what it calls a Gigafactory in the state of Brandenburg produce some 5,000 vehicles per week, which equates to around 250,000 vehicles per year.

"We were able to secure jobs here and were never affected by production stoppages or job cuts like other industrial sites in Germany," said Thierig.

The site was expanded in 2025 with substantial investments not only in the launch of the models but including the construction of a new building for pre-series vehicles.

Canada has also been added as a market, he said, allowing customers in that country to purchase vehicles from Grünheide at a lower price because they are not subject to the higher US import duties.

Sector navigating global challenge

The automotive industry is in a global profitability crisis. In Germany, the electric car market has picked up again, but it remains difficult for Tesla: from January to November 2025, 17,358 new Tesla cars were registered, according to the Federal Motor Transport Authority, a decrease of around 48% compared to the same period last year.