Despite sluggish domestic sales, Tesla is charging ahead in Europe — scaling up production at its Berlin-area Gigafactory to meet growing global EV demand.
Tesla’s Gigafactory in Grünheide, Germany, is shifting into overdrive. According to factory chief André Thierig, the company is officially ramping up its production targets for the second half of 2025 — a strategic response to rising demand across international markets.
“Sales figures are currently looking very promising, which led us to adjust our production targets upwards,” Thierig told German news agency DPA. The updated roadmap will see increased output through both Q3 and Q4 of 2025.
But Germany Tells a Different Story
While international demand appears strong, Tesla’s performance in Germany has hit a speed bump. In July 2025, Tesla registered just 1,110 new vehicle deliveries in Germany — less than half the number from the same month a year earlier. From January through July, total sales in the country fell by nearly 58%, according to the KBA (Federal Motor Transport Authority).
Germany remains a tough market to crack. With homegrown brands like Volkswagen and BMW holding firm, and Chinese automakers making aggressive inroads, Tesla faces stiff local competition. Add to that the occasional political firestorm linked to Elon Musk, and it’s no surprise that German buyers may be feeling hesitant.
Europe and Beyond: A Bright Spot
Still, the broader picture looks far more optimistic. Thierig emphasized that the Grünheide factory serves more than 30 countries, and demand across those markets is clearly on the rise. “We’re seeing strong indicators across the board — not just within Germany,” he said.
The Berlin plant, which opened in 2022, is a linchpin in Tesla’s European strategy. Its location not only reduces delivery times across the continent but also anchors Tesla’s commitment to localized manufacturing — a key competitive edge in an era of disrupted supply chains and soaring logistics costs.
What This Means for Tesla
The decision to scale up production despite local headwinds signals Tesla’s long-term commitment to the region — and confidence in its global growth trajectory. With the EV market rapidly expanding and regulatory pressure mounting to reduce emissions, Tesla is positioning itself to stay ahead of the curve.
While Germany remains a challenge, Tesla’s ability to pivot and pursue strength in broader markets may prove to be its secret weapon in Europe’s high-stakes EV battle.
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