Tesla Increases Production at Grünheide Factory Amid Sales Decline

Tesla will raise production at its German plant in late 2025, citing strong demand in over 30 markets despite a steep drop in German sales, reports DPA.

Tesla is preparing to ramp up production at its Grünheide factory despite a steep decline in German sales. Plant chief André Thierig told DPA that production plans for the third and fourth quarters of 2025 have been revised upward. The move is driven by “very good sales figures” across more than thirty export markets served by the site.

The contrast with the domestic market is striking. According to Germany’s Federal Motor Transport Authority (KBA), Tesla sales between January and July fell nearly 58% year on year, with July alone showing a drop of over 50% and August around 40%. Meanwhile, the country’s overall EV market continues to expand, highlighting stronger competition — particularly from Chinese brands. Analysts point to rivalry, expectations for refreshed models, and reputational issues surrounding Elon Musk as key reasons for the slump.

The Grünheide facility remains Tesla’s key export hub, supplying Model Y vehicles to more than thirty countries in and outside Europe. Strong foreign demand gives the company the confidence to boost output even as local demand falters. The decision signals Tesla’s bet on continued growth across European EV markets, where consumer interest remains robust.