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Tesla plans to ramp up production again at its factory in Grünheide near Berlin. The American manufacturer is seeing rising demand for its electric cars and therefore aims to build more vehicles, hire more people, and use the site to serve new markets before the end of this year.
According to the annual report of its German subsidiary, Tesla expects a significant increase in production volume in 2026 compared to last year. Capacity is also set to rise further, as the factory is expected to serve more than 30 markets while simultaneously expanding into new sales territories. The German production facility remained profitable in 2025. Tesla Manufacturing Brandenburg SE reported a net profit of 77.1 million euros, approximately 20 million euros more than a year earlier, despite what the company itself describes as a challenging market environment. The Tagesspiegel therefore calls the factory a “gold mine” for Elon Musk, especially since Tesla’s global sales were under pressure last year.
Musk’s Gigafactory in Europe
The Gigafactory in Grünheide has been Tesla’s sole production site in Europe since 2022 and is currently manufacturing the Model Y. By the end of 2025, approximately 11,000 people were working at the site. Tesla wants to expand that number further and has plans to create a total of 3,500 additional jobs in vehicle and battery production. The company aims to eventually ramp up production to 7,500 cars per week. That would amount to approximately 375,000 vehicles per year. Battery cell manufacturing is also set to be expanded further, although those investment plans remain contingent on economic conditions. Tesla does caution, however, that geopolitical tensions and supply chain disruptions could affect these projections. Nevertheless, the company sees ample room for further growth in Grünheide. As a result, the German factory remains not only strategically important for Europe but also one of the few Tesla sites where the automaker is still clearly committed to expansion.
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