Tesla Increases Production Plans at Berlin Gigafactory Amid Europe Demand

Tesla's Gigafactory near Berlin is increasing its production plans for the third and fourth quarters of 2025, driven by what plant manager André Thierig described as "very good" and "exceptional" sales figures. Despite this optimism and expectations of positive trends across the more than 30 European markets it supplies, recent data show a contrasting picture with significant sales declines in Germany and several other European countries, including France, Belgium, Denmark, and Sweden. Norway stands out as a notable exception with a rise in Tesla registrations by 21% in the last month and 26% year-to-date. The factory, which reached a milestone of producing 500,000 Model Ys earlier this year, is also undergoing expansions to double capacity, aiming to meet demand for models like the refreshed Model Y Performance. Tesla's ability to scale production amid mixed market signals highlights its strategic focus on European localization and operational efficiency enhancements despite competitive and economic challenges. These developments underscore the complex dynamics Tesla faces in Europe, balancing production increases with uneven regional demand.