Tesla Plans 3,500 New Jobs at Gigafactory Berlin as Volkswagen Restructures

Tesla plans to add about 3,500 jobs at Gigafactory Berlin as it ramps up production of the Model Y, even as Germany’s automotive industry faces significant restructuring.

The expansion comes as Volkswagen weighs factory closures and cost-cutting measures in response to mounting financial pressure.

Tesla targets higher production in Germany

According to Tesla Manufacturing Brandenburg’s latest annual report, the company expects production at Gigafactory Berlin to increase significantly in 2026.

Tesla aims to raise output to 7,500 Model Y vehicles per week, giving the factory an annual production capacity of about 375,000 vehicles, according to CarUp.

To support that goal, the automaker plans to hire approximately 3,500 additional employees. The facility currently employs around 11,000 people and is already one of the largest industrial employers in Germany’s Brandenburg region.

Tesla also continues to expand its localized manufacturing strategy by integrating more of the production process, including battery cell manufacturing and final vehicle assembly, at the Berlin site.

Expansion contrasts with broader industry challenges

Tesla’s hiring plans stand in sharp contrast to the challenges facing parts of Germany’s automotive industry.

Volkswagen has been pursuing cost reductions as it evaluates potential factory closures and workforce reductions in an effort to improve profitability.

Despite a softer European EV market, Tesla’s German manufacturing business remained profitable in 2025. The company reported net income of €77.1 million (about $89 million), up from €57.1 million a year earlier, although revenue declined to €7.1 billion from €7.7 billion as production temporarily slowed during Model Y manufacturing updates.

Tesla produced approximately 202,000 vehicles at Gigafactory Berlin during 2025, down slightly from the previous year as the company integrated updated versions of the Model Y into production.

EV.com tracks the evolving EV collector space and performance electric vehicles hitting the market. Explore our listings to find the best EVs in your area available today.