Tesla to Boost German Plant Production on Strong Sales

Lead: Tesla will increase output at its Gruenheide factory near Berlin for the remainder of 2025, citing robust sales, plant manager André Thierig told DPA on September 14.

Nut Graf: The decision to raise third- and fourth-quarter targets underscores renewed demand across Europe and beyond, as Tesla seeks to capitalize on a positive market trend despite earlier setbacks in the German market.

Production Revision and Growth Markets

• Revised Targets: Production plans for Q3 and Q4 have been adjusted upward to meet current sales momentum.
• Market Reach: The German plant supplies more than 30 markets, with positive sales signals reported across all regions.

Sales Performance and Market Challenges

• July Sales Decline: In July, Tesla’s German sales plunged 57.8% year-on-year, delivering just 1,110 vehicles.
• Competitive Pressure: Strong competition from Chinese EV makers has intensified pricing and feature battles in Europe.
• Political Spotlight: Analysts note that Elon Musk’s political activities may have dampened consumer sentiment in key markets.

Strategic Implications

• Capacity Utilization: Expanding production in Germany aims to optimize the state-of-the-art Gigafactory, reducing unit costs through higher throughput.
• Global Supply: With over 30 export destinations, increased output will support Tesla’s global delivery network and buffer against regional demand fluctuations.
• Long-Term Outlook: Leveraging improved sales trends, Tesla is reinforcing its manufacturing footprint in Europe to sustain growth and counterbalance challenges in other markets.