According to a new report, Tesla has decided to increase production capacity at its Gigafactory Berlin near Berlin, Germany, by the end of the year. While the brand’s recent significant sales decline in Germany may seem strange at first glance, the move is driven by a rather logical strategy. Here are the details.

Tesla is increasing production at its Berlin factory despite declining sales in Germany

Tesla’s decision to increase production isn’t explicitly related to the German market. Instead, the company’s move stems from its rising sales figures worldwide. Tesla’s German production chief, André Thierig, said: “We are currently experiencing very good sales figures, and therefore we have revised our production plans upwards for the third and fourth quarters.”

Tesla’s Gigafactory in Berlin supplies vehicles to more than 37 global markets, including Europe, the Middle East, and Taiwan. And while there has been recent increasing opposition to Tesla in Europe, the rest of the world appears less affected by these political stances.

Within Germany, Tesla sales fell by a staggering 57.8 percent in the first seven months of this year compared to 2024. Similarly, despite the launch of the new Model Y in March, sales across the European Union fell by 40 percent in July.

However, despite this local decline, the factory continues to operate to meet global demand. This demonstrates that the Berlin factory’s success isn’t solely dependent on the performance of the local market, but rather on its critical role in Tesla’s global production and distribution network.

So, what are your thoughts on this? Share your thoughts in the comments.