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Tesla's Grünheide Plant: The Plan to Reach One Million Cars a Year

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In brief

Tesla wants to double the long-term capacity of its only European car plant, in Grünheide, Germany, from a planned 500,000 vehicles a year to one million. The company plans to file permit applications by the end of 2026 for a second production hall and expanded battery output, with construction starting in 2027 at the earliest.

Tesla Manufacturing Brandenburg SE, the company's only vehicle plant in Europe, plans to roughly double its long-term production target at the Grünheide site near Berlin, according to German news agency dpa reporting carried by Schwäbische Zeitung and other outlets, and confirmed by a company spokeswoman. The plant was originally planned to reach 500,000 cars a year, a level it has not yet achieved. Tesla now says it wants the site to be able to build up to one million vehicles annually.

What Tesla has filed and when

Tesla intends to submit a second partial building permit application to Brandenburg authorities by the end of 2026, dpa reported. The application covers a new production hall to be built north of the existing factory grounds, according to a summary of the filing reported by t-online. The new hall would cover about 536,000 square meters, more than twice the roughly 219,000 square meters of the current production building. Tesla says the project would not require clearing additional forest.

Construction of the new hall is not expected to start before 2027, and Tesla has described the overall expansion as a project spanning roughly a decade. The plan also includes a new on-site wastewater treatment facility intended to handle increased water use without placing extra burden on the municipal system, and a dedicated electrical substation, according to the t-online summary of the permit filing.

Jobs and battery production

According to dpa, Tesla plans to hire about 2,000 additional employees to support vehicle output rising toward 7,500 cars a week, and more than 1,500 further staff for expanded battery cell manufacturing. The plant's battery cell storage capacity is planned to grow to 100 gigawatt-hours a year. Grünheide currently employs about 12,600 people, dpa reported; the workforce had previously dropped below 11,000 before the recent round of hiring.

Current output versus the target

The one-million target is far from current reality. Tesla Manufacturing Brandenburg built about 202,000 Model Y vehicles at Grünheide in 2025, down from roughly 211,000 the year before, according to figures reported by automotive outlet Speedme. That means the plant ran at about 54% of its already-approved capacity in 2025, and would need output to rise nearly fivefold to hit the long-term one-million-car design figure.

Grünheide: key figures
MetricFigureSource/date
2025 vehicle output~202,000 Model YTesla Manufacturing Brandenburg data, via Speedme
2024 vehicle output~211,000 Model YTesla Manufacturing Brandenburg data, via Speedme
2025 capacity utilization~54%Speedme analysis
Original planned capacity500,000 vehicles/yeardpa, Oct. 2026
New long-term targetUp to 1,000,000 vehicles/yeardpa / t-online, Oct. 2026
New hall size~536,000 m²t-online, citing permit filing
Existing hall size~219,000 m²t-online, citing permit filing
Planned battery capacity100 GWh/yeardpa, Oct. 2026
New jobs planned~2,000 (production) + 1,500+ (battery)dpa, Oct. 2026
Current workforce~12,600dpa, Oct. 2026

A history of local opposition

Grünheide's expansion has faced resistance before. In a non-binding local referendum, the results of which were reported on 21 February 2024, 65% of more than 5,000 participating residents voted against an earlier version of Tesla's expansion plan, which involved adding 170 hectares to the factory site for a train station, warehouses and other infrastructure, according to the Clean Energy Wire. Opponents cited forest clearing and the plant's high water use. The town's mayor said the result meant the development plan could not be adopted in its existing form, while Brandenburg's economy minister called for using the vote to reconcile residents' concerns with the company's plans.

Brandenburg's state environmental agency later granted Tesla an initial environmental permit, reported by Euronews in October 2024, covering the first of three planned phases, including storage areas, a battery cell test laboratory and logistics infrastructure. Euronews also noted that a related rail station project had been scaled back after protests from locals and environmental groups, reducing the number of trees that needed to be removed.

Why this matters for the EV production race

Grünheide is Tesla's only vehicle and battery plant in Europe, alongside its larger Gigafactories in Texas and Shanghai. Euronews noted that reaching a million-car capacity would make it the largest car factory in Germany. The expansion plan comes as Tesla itself reported falling output at the site in 2025 and as, according to Euronews, European EV demand has been described as weakening — a combination that leaves open how quickly, if ever, the plant will approach the new long-term target even once permits are granted.

Questions

What is Tesla's new production target for Grünheide?
Tesla wants the Grünheide site to be able to build up to one million vehicles a year in the long term, up from an original planned target of 500,000, according to dpa reporting.
When will construction of the new hall start?
Tesla plans to file a second partial building permit application by the end of 2026; construction of the new production hall is not expected to begin before 2027, and the full expansion is described as a roughly ten-year project.
How many cars does Grünheide actually produce now?
The plant built about 202,000 Model Y vehicles in 2025, down from about 211,000 in 2024 — roughly 54% of its already-permitted capacity, according to figures reported by Speedme.
Did local residents support the expansion?
An earlier version of the expansion was rejected by 65% of participants in a non-binding referendum, with results reported in February 2024, mainly over concerns about forest clearing and water use, according to the Clean Energy Wire.
How many jobs would the expansion create?
Tesla plans to hire about 2,000 additional staff for higher vehicle production and more than 1,500 more for expanded battery cell manufacturing, according to dpa.

How the world is telling it

Sources

  1. Schwäbische Zeitung (dpa) — Tesla schiebt Werksausbau an - Eine Million Autos als Ziel
  2. t-online — Neue Halle, eine Million Autos: Tesla plant Mega-Erweiterung in Grünheide
  3. Euronews — Tesla gets go-ahead to expand controversial factory in Germany
  4. Speedme — Tesla Giga Berlin targets 1 million cars, but 2025 output was just 202,000
  5. Clean Energy Wire — Residents reject expansion of German Tesla factory in non-binding referendum

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