Current: Tesla plans to double the capacity of its German factory, with construction of a new hall starting in 2027
Image: Tesla (Model Y in front of German factory)
Until the opening of its German Gigafactory in March 2022, Tesla moved as quickly as possible, but it took its time with further expansion. Although it submitted applications in summer 2023 to double capacity at Grünheide to 1 million electric vehicles per year, it delayed providing specifics for a long time. Now momentum seems to be building on this matter: According to reports, Tesla intends to formally apply for part of the capacity increase still this year and begin construction of a massive new facility in 2027.
Tesla confirms construction plans
The information on Tesla’s current plans for the site in Grünheide near Berlin was first reported on Wednesday by RBB and MOZ, with the latter article behind a paywall. According to these reports, the new Gigafactory production hall is set to be built north of the existing one and will be more than twice as large at 536,000 square meters. Tesla intends to submit additional applications in December and begin construction next year; a third and final approval would be required for installing the facilities inside.
Upon request, the company told both publications that the basic feasibility of the expansion project in Grünheide had already been determined in October 2024. The company confirmed it intended to submit a partial application for a northern production facility, without giving a specific date. Tesla stated that approval of the application would enable “the construction of this building.”
Gigafactory delayed in startup phase
In the first step, Brandenburg state had previously approved a capacity of 500,000 electric vehicles per year for Tesla’s German factory. The financial reports have shown “>375,000 Model Y” for many quarters, meaning only 75 percent of the approved production level. Moreover, the actual capacity installed in Grünheide has so far not been utilized to any significant extent. It was not until this October that Tesla publicly committed itself to using the full capacity by increasing production from 5,000 Model Y units per week in June to 7,500 per week.
The question of what Tesla plans to build in a new massive hall in Grünheide next year is only addressed in the MOZ report. Observers assume it will be “for another vehicle,” not just more Model Ys. This seems plausible because the approved capacity of the existing Gigafactory hall, built specifically for this purpose, has not yet been fully utilized. Adding another production line there should allow Model Y production to increase much more quickly if needed than with a new construction.
New Tesla models from Grünheide?
The local newspaper identifies the Cybercab robotaxi and the Semi truck as candidates, which Tesla CEO Musk promised to employees at the German Gigafactory in March. He also mentioned the Optimus robot as a potential future product, referring essentially to Tesla’s entire range of electric vehicles and other products aside from the Cybertruck, which cannot be registered unchanged in Europe, and the Model 3. The Model 3, as Tesla’s second volume model currently being shipped from China to the continent, might also be an option for Grünheide.