Tesla targets 375,000 vehicles per year at German plant as demand rebounds and profit rises

Tesla is preparing a sharp production increase at its Grünheide factory near Berlin, according to the 2025 annual report of its German subsidiary, Tesla Manufacturing Brandenburg SE. The company forecasts a significantly higher production volume for the 2026 financial year, driven by recovering demand for electric vehicles and a rise in net profit.

2025 financials: profit up, revenue down

Despite a challenging market environment, the subsidiary closed 2025 with a net profit of €77.1 million, an increase of roughly €20 million compared to 2024. Revenue, however, fell from €7.7 billion in 2024 to €7.1 billion in 2025, a decline the company attributes mainly to lower production costs. Capacity utilisation slipped slightly to 54 percent, from 56 percent the year before. The plant produced 202,000 vehicles in 2025, 9,000 fewer than in 2024, a drop Tesla links to a model changeover and the integration of new variants. The company nonetheless described the production level as stable.

2026 ramp-up and new markets

For the current year, Tesla is targeting a steep production increase. The company had already announced plans to lift output to as many as 7,500 vehicles per week, equivalent to 375,000 per year. Capacity utilisation is expected to rise accordingly. The Grünheide site currently supplies more than 30 markets, and Tesla intends to add further markets. The expansion is also supported by renewed government subsidies.

For the 2026 financial year, the company forecasts a significantly higher production volume compared with the previous year.

Jobs and the full value chain

Tesla plans to create 3,500 new jobs at the site, which at the end of 2025 employed around 11,000 people including temporary workers. The factory, Brandenburg's largest industrial employer, opened in March 2022 and currently produces the Model Y. Tesla aims to bundle the entire value chain from battery cell to finished vehicle at the single location, a setup it describes as unique in Europe.

This is unique in Europe in this form.

Risks: geopolitics and battery challenges

The company warns that an escalation of geopolitical tensions and possible macroeconomic consequences such as disrupted supply chains could weigh on the forecast. It also notes that battery cell production in Europe faces major challenges compared with the US and China, and that the full battery value chain in Grünheide remains dependent on economic conditions.

Environmental scrutiny

Environmental groups have raised concerns because the plant is partly located in a water protection area. Tesla points to a report indicating that the factory does not affect groundwater. The issue remains a point of contention as the site expands.