Tesla made critical statements about its Berlin factory plans. Currently, the growth plans are somewhat uncertain. Factory manager André Thiérry expressed, “Without a clear signal of market demand, we will not invest billions of dollars,” revealing their hesitation regarding expansion. So why has such a decision been made?

Tesla’s Expansion Plans for the Berlin Factory Suspended: Sales Will Determine the Outcome!

Last month, the Brandenburg Environmental Agency approved only a portion of Tesla’s expansion plans. The approval was limited to activities within the existing factory area, and permission was not granted for clearing nearby forested areas. The expansion permit will be granted in several stages, with the approval for the second stage also having been postponed last month.

Thiérry noted that electric vehicle sales play a significant role in the factory’s expansion. He mentioned that many companies have been affected by the global decline in the electric vehicle market since the beginning of the year. Tesla acknowledges that the electric vehicle market has stagnated in 2024 but believes that electric vehicles are the future of the automotive industry.

Thiérry expressed optimism about the Berlin factory and believes the market will revive. Sales from the UK are also expected to contribute to the expansion of the Berlin factory. Thiérry stated, “We believe the market will revive and the Berlin factory will play an important role. However, this will take some time.”

Tesla’s Berlin factory has significant potential, and the company is waiting for the right time to make the most of it. They believe that market demand must be clarified before investing. In other words, Tesla is being very cautious with its investments and closely monitoring future sales figures.

What do you think? Is Tesla justified in its cautious approach? You can share your thoughts in the comments below.