Tesla to Inject $250 Million into German Factory
TSLA
Published on 05/12/2026 at 01:00 pm EDT
By Mauro Orru
Elon Musk's Tesla will invest $250 million into its German factory to increase production of battery cells for electric vehicles, moving to boost output in Europe as its sales in the region regain strength.
The Berlin-Brandenburg plant is Tesla's first manufacturing site in Europe. The so-called gigafactory, which opened in March 2022, makes hundreds of thousands of Model Y vehicles and millions of battery cells, the energy storage units that power electric vehicles.
Factory lead Andre Thierig wrote in a post on X that the $250 million investment would enable Tesla to hire more workers and ramp up production as the company aims for one million cars built on site. The group recently hit the 750,000 milestone.
Thierig said the announcement represented good news during challenging times for the German industry as local carmakers face stiff competition from Chinese rivals. Last week, Porsche AG said it would close three subsidiaries and shed around 500 jobs.
Meanwhile, Volkswagen said it would double down on its transformation plans, improving vehicle manufacturing costs, cutting overhead costs, boosting plant efficiency and speeding technology development and decision-making.
Tesla's investment comes as the company's sales in Europe regain momentum after a slump that stretched more than a year. Data from the European Automobile Manufacturers' Association, an industry body also known as ACEA, showed that Tesla's sales in Europe nearly doubled in March, an improvement from growth of nearly 12% recorded in February, the first month of growth since December 2024.
Tesla faced a challenging 2025, marked by customer backlash due to Musk's involvement with the Trump administration while he oversaw the Department of Government Efficiency as well as intense competition from Chinese auto giant BYD, which gained market share in Europe.
Write to Mauro Orru at [email protected]
(END) Dow Jones Newswires
05-12-26 1259ET