Tesla recently announced plans to increase production at its electric car factory in Germany, following a surge in sales figures. The plant’s manager, Andre Thierig, revealed to the German news agency DPA that due to the strong sales performance, Tesla has revised its production targets for the third and fourth quarters of the year.
The decision to boost production comes at a time when Tesla has experienced a significant drop in sales in Europe. According to the European Automobile Manufacturers’ Association (ACEA), Tesla’s sales in the European Union have decreased by 43.5% compared to the previous year, with registrations reaching 77,446 units since the beginning of 2025.
In Germany, one of Tesla’s key markets in Europe, the company has faced tough competition from local and Chinese automakers, leading to a 57.8% decline in sales in the first seven months of the year, as reported by the KBA road transport agency.
Despite the sales challenges, Tesla remains optimistic about its future in Europe. Thierig mentioned that the company supplies to over 30 markets and is observing a positive trend in sales. The German factory primarily produces the Model Y crossover, which was previously a top-selling car in Europe and globally. However, Tesla has seen a decline in sales, with Musk attributing it to factory retoolings for facelifts.
Tesla’s focus on innovation in artificial intelligence and robotics has been evident in its production processes. The company has traditionally been secretive about specific production numbers for each model and market, grouping models like the Model 3, Model Y, Model S, and Cybertruck under broader categories.
Overall, Tesla’s decision to increase production in Germany reflects its commitment to meeting the growing demand for electric vehicles in the region. Despite facing sales challenges, the company remains confident in its long-term growth prospects and continues to innovate in the electric vehicle market.