Tesla plans production expansion in Grünheide and aims to supply more than 30 markets

Declining Revenues but Rising Profit

Despite the difficult market environment, the Tesla subsidiary closed fiscal year 2025 with net income of 77.1 million euros, an increase of around 20 million euros compared to 2024. The rise in profit alongside declining revenue is attributed in the report, among other things, to efficiency measures.

For 2026, the company now forecasts "a significantly increasing production volume compared to the previous year," as stated in the annual report. Specifically, Tesla aims to ramp up production in Grünheide to up to 7,500 vehicles per week – equivalent to around 375,000 vehicles per year. In addition, battery cell manufacturing at the site is to be expanded.

Expansion Target: Up to 7,500 Vehicles per Week

According to the report, more than 30 markets are already supplied from Grünheide, and additional markets are to be developed. The "Tagesspiegel" was the first to report on the expansion plans. With the planned expansion, Tesla is responding to what it sees as growing demand for electric vehicles in Europe.

The move comes at a time when Tesla's stock is being rated predominantly positively by analysts: Deutsche Bank rated the stock "Buy" in mid-July 2026, Jefferies rated it "Hold," and RBC Capital Markets rated it "Outperform" already on July 7. The ratings reflect the expectation that the Grünheide site could contribute more strongly to group earnings in the future.

Analysts See Potential

Observers also see the project as a signal to the European market: Tesla wants to shorten its supply chains and produce vehicles for Europe locally. With the planned increase in weekly production, Grünheide would prospectively come closer to the capacity of other major Tesla plants, for example in the USA or China.

The expansion of battery cell manufacturing is considered a key building block for deepening value creation in Brandenburg. To date, primarily drive batteries have been assembled in Grünheide; industrial production of cells is now to be scaled up in order to reduce dependence on external suppliers. Tesla had announced the goal of expanding battery cell manufacturing at the beginning of the year.

It remains unclear so far how the expansion will affect the number of employees. At the end of 2025, around 11,000 people worked at the site; no concrete new hires have been announced in connection with the expansion. The exact timetable for increasing weekly production to 7,500 vehicles also remains open.