Tesla (TSLA, Financials), the electric vehicle and energy business, is planning to ramp up output at its Gigafactory Berlin-Brandenburg as demand for the Model Y rebounds in Europe.
The corporation plans to raise output to about 7,500 vehicles a week, or some 375,000 units a year at full capacity. That would be an increase of nearly 20 percent from current levels.
Tesla also aims to add about 3,500 personnel in the near-to-medium term. About 1,000 of those new workers would help the immediate ramp-up in manufacturing, with others working in car assembly and battery operations.
Currently, the Berlin facility is delivering the Model Y to European markets, and exporting automobiles to over 30 nations.
A boost to local manufacturing might help make Tesla less reliant on exports from China and the US. It can also assist the organization in managing logistical expenses and any trade restrictions.
The growth comes after a slower phase in 2025 when the plant's output and sales decreased while profitability improved.
Investors will now monitor to see if rising European demand lifts plant usage rates without squeezing profitability.