Tesla is preparing to increase production at its Giga Berlin in 2026, a move that could have implications for Canadian buyers as more Model Y vehicles are shipped from Germany to overseas markets.
The expansion follows a steady production ramp at the Grünheide plant throughout 2025, with the automaker signaling that operations in Europe have stabilized and are ready for the next phase of growth.
According to plant manager André Thierig, the facility increased production each quarter last year and finished 2025 on solid footing. “We are also looking positively into the new year and expect a further increase,” Thierig told the German Press Agency DPA.
The factory currently employs around 11,000 people and produces more than 5,000 units of the Tesla Model Y each week—equating to roughly 250,000 vehicles annually. Notably, Thierig emphasized that the site has avoided both production stoppages and layoffs, a contrast to several other industrial operations in Germany that have struggled amid economic headwinds.
While factory output is trending upward, Tesla’s performance in the German domestic market remains under pressure. From January through November 2025, just 17,358 new Teslas were registered in Germany, representing a decline of nearly 48 percent year over year.
Even so, Giga Berlin serves more than 30 export markets, including Canada, where vehicles built in Germany can avoid higher U.S. import tariffs which pushed prices $20,000 higher.
Looking ahead, Tesla is optimistic that upcoming government incentives will help revive interest in electric vehicles. Germany plans to introduce new support measures in 2026 aimed at helping low- and middle-income households purchase or lease EVs. “In our opinion, it is important that the announcement is now implemented very quickly so that consumers really know what exactly is coming and when it will come,” Thierig said.
Beyond vehicles, Tesla is also laying the groundwork for deeper localization. The company recently announced plans to prepare for battery cell production in Germany, with expectations of up to 8 GWh of annual capacity starting in 2027.
