Tesla's expansion plans for Grünheide are taking shape
The planned expansion of Tesla’s factory in Grünheide, Germany, is taking clearer shape. According to media reports, the U.S.-based electric vehicle manufacturer intends to significantly increase production in the coming years by building a new, much larger production hall along with additional infrastructure.
Image: Tesla
According to the news portal RBB, Tesla aims to submit applications for further expansion in Grünheide for approval in December. The focus of the plans is to build another production hall, which would be constructed north of the existing one. It is planned that this new hall will be roughly twice as large as the current manufacturing facility, which covers about 219,000 square meters. The building in question is expected to cover around 536,000 square meters.
Currently, the factory in Grünheide has a capacity to produce up to 375,000 Model Y units per year. In the long term, it is planned to produce as many as one million vehicles there. This figure has been mentioned for years, for example during an initial expansion approval in mid-2024. Tesla has not yet given specific details regarding possible staff increases, though around 12,000 people currently work at the German plant.
According to RBB, construction of the new hall is expected to begin in 2027. It is not yet clear which vehicle models will be produced there. The Märkische Oderzeitung reports, citing “observers,” that in addition to the Model Y, “another vehicle” is planned.
Tesla's expansion plans are generally divided into three phases, each requiring a so-called partial permit. The first partial permit was issued in October 2024 by the Brandenburg State Environmental Agency. Tesla submitted the corresponding application in March 2023. According to a previous report by the Märkische Oderzeitung, the expansion involves 70 hectares in the northern part of the site. While clearing land was previously covered under the existing zoning plan, Tesla had to reapply for the expansion work on its own factory grounds.
While the first phase focused on modernizing the existing hall and creating additional storage and logistics spaces within the Tesla site, the upcoming second phase emphasizes the construction of a second production hall. The third partial approval is expected to cover factory equipment and the building of a freight railway station on the premises. The RBB states that although “all three phases were applied for as partial approvals in 2023, further documents must be submitted for phases two and three.”
The RBB identifies the plan for an additional water circulation system along with wastewater treatment as a key aspect of further planning, as water consumption has long been considered a sensitive issue in Grünheide. The RBB states, “While the new hall and additional employees would overall use more water than before, the on-site treatment is intended to prevent extra wastewater from being generated. Therefore, the amounts of fresh water and wastewater currently agreed upon in contracts with the Strausberg-Erkner Water Association (WSE) are expected to be sufficient for further expansion. The enhanced wastewater treatment would represent Tesla’s own effort within the factory premises.”