Tesla plans to increase production output at its Giga Berlin manufacturing plant for the remainder of the year, a direct response to what the factory’s head, André Thierig, calls “very good sales figures.”
The news, which comes from an interview with Germany’s DPA news agency, could be seen as a sign of returning demand for Tesla’s vehicles across Europe. However, Tesla is now exporting vehicles from Giga Berlin to Canada, which can also be a factor in the increased production.
“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”
The production ramp-up is being driven by strong demand from the numerous markets served by Giga Berlin - over 30 countries in total.
What Is Causing the Increased Demand?
While the production increase is primarily to meet European demand, the Giga Berlin factory is increasingly playing a crucial role in Tesla’s global manufacturing strategy for specific models and markets.
The plant’s influence now extends across the Atlantic, as Giga Berlin currently serves as the source for the Model Y Long Range AWD vehicles being supplied to the Canadian market due to tariffs. Giga Berlin is also the only Gigafactory currently producing the refreshed Model Y Performance, which many buyers have been waiting for. Given that the Performance model was even better than expected, it will likely see a surge in its initial production runs.
Any customer ordering a Performance variant in the countries it’s currently available in will receive a vehicle manufactured at Giga Berlin.
The decision to increase output at Giga Berlin is a positive sign, especially after Tesla experienced several tough quarters. While the increase at Giga Berlin may reduce production in the U.S. due to Model Ys going to Canada from Berlin instead of Fremont and Austin, it’s still a positive sign that Tesla is seeing enough increased demand in Europe to adjust its production output.
