Tesla announced plans on July 20, 2026, to increase production at its Gigafactory in Grünheide, Germany. This expansion responds to a resurgence in European demand for the Model Y vehicle.
The company targets a weekly output of approximately 7,500 vehicles. This production rate translates to an annual volume of roughly 375,000 units. The expansion will create approximately 3,500 new jobs at the facility.
Tesla aims to optimize factory utilization following a period of lower output. Increased local manufacturing reduces reliance on imports from China and the United States. This strategy mitigates potential tariff impacts and supply chain delays. The German plant currently supplies Model Y vehicles to more than 30 international markets.