Tesla announced plans on July 19 to significantly increase production at its Grünheide factory in Germany. The company cited recovering demand and improved profitability as primary drivers for the expansion.
The 2025 annual report for the German manufacturing unit highlights the popularity of the Model Y. This plant currently supplies the vehicle to more than 30 markets.
Tesla aims to reach a weekly production capacity of 7,500 vehicles. This target equates to an annual output of approximately 375,000 units.
The expansion will enhance local battery production capabilities. The project is expected to create thousands of new jobs, solidifying the factory as Tesla's European hub.