Tesla‘s Gigafactory Berlin-Brandenburg chief André Thierig said the company will continue building cars “for a very long time,” even as it expands into AI, robotics, and energy.
In an interview with Automobilwoche published on Monday, Thierig described the company as fundamentally different from the legacy automakers he worked alongside earlier in his career.
“The difference is fundamental. Ford, like many established European automakers, is in the midst of a painful transformation from combustion engines to electric cars,” he noted, adding that “at Tesla, the word ‘transformation’ does not exist in this form. We don’t have to deal with problems of the past.”
According to Thierig, Tesla‘s lack of legacy — “not in the factory, not in the design, not in the organization” — translates into flatter hierarchies, shorter decision-making, and minimal bureaucracy in day-to-day operations.
“Speed, decisiveness and responsibility at low levels are basic traits that we want to preserve,” Thierig said.
The executive outlined how the Grünheide plant is scaling both vehicle and battery cell production to reduce its dependence on intercontinental supply chains — continuously affected by trade tensions.
Recovery in Europe
The interview comes as Tesla‘s European sales rebound after a difficult 2025, when the Grünheide plant paused production in the first quarter to retool for the refreshed Model Y and Chinese rivals expanded aggressively across the continent.
Year-to-date registrations through April stood at 89,429 units, up 45.8% from the same period last year, according to data published by the ACEA last month.
As of Tuesday, most European countries had yet to disclose vehicle registration figures for May.
The demand recovery has also been reflected in pricing.
In late April, the company raised Model Y prices by approximately €1,000 across several key European markets, including Norway, France, the Netherlands, and Germany — a move widely interpreted as a sign that demand is outpacing available supply.
To meet that demand, Tesla announced it would hire 1,000 new employees at the Grünheide plant by the end of June, supporting a roughly 20% increase in weekly production starting in the third quarter.
The company also said it expects to convert approximately 500 temporary workers to permanent, full-time roles over the course of the year.
The factory currently produces more than 5,000 Model Y units per week — which would represent around 260,000 units per year — and has built more than 700,000 since production began in 2022.
Thierig said the plant holds a permit to expand to up to 1 million vehicles per year, though no concrete decision has been made on which additional product — such as the Semi truck, Optimus robot, or Cybercab — will be built at the site next.
“Which product comes to Berlin and when depends on the market,” he said, while noting that the facility’s infrastructure is designed for adaptability. “Tesla speed also means Tesla flexibility. Many production buildings can be built in a relatively universal way.”
Supply Chain Flexibility
Thierig pointed to Tesla‘s high degree of vertical integration at the Berlin site as a core advantage, particularly in responding to shifting trade conditions.
“Our high level of vertical integration helps us a lot,” he said. “We are less dependent on suppliers in the immediate vicinity and can therefore adjust production capacities more quickly.”
He cited the decision to produce Model Y units for the Canadian market at the Berlin plant as an example.
“The trigger was the customs disputes between the US and Canada,” Thierig said, referring to the 25% reciprocal tariffs imposed by each of the neighboring countries last year.
“While you could say that a Model Y is a Model Y, the homologation requirements in Canada differ from those in Europe,” he said. “We had to adapt supply chains and change processes. We managed to do that very quickly.”
On the supplier side, Thierig said Tesla has achieved roughly 90% localization among its direct Tier 1 suppliers on the European continent.
“The past few years have shown how sensitive global supply chains are,” he said. “That is why we want to become more robust and resilient.”
He was clear that the factory’s location in Germany was not primarily driven by tariff dynamics. “We had always said that we wanted to produce battery cells here,” he said. “Localization plays a big role for us.”
Berlin vs. Shanghai
Thierig acknowledged that Giga Berlin cannot match the cost efficiency of Tesla‘s Shanghai factory, but argued the European plant still operates a viable business model once logistics and trade costs are accounted for.
Tesla‘s Gigafactory Shanghai remains the company’s highest-volume production facility, accounting for more than half of its global vehicle output.
The plant serves as the primary manufacturing hub for the Model 3 and Model Y outside of the US, supplying both the Chinese market and export destinations worldwide.
According to data from China’s Passenger Car Association (CPCA), Shanghai delivered approximately 213,000 vehicles in the first quarter — accounting for nearly 60% of Tesla’s global deliveries of 358,023 units and more than half of its worldwide production of 408,836 vehicles.
By annual production capacity, Shanghai is Tesla‘s largest plant, with the ability to produce around 950,000 Model 3 and Model Y vehicles per year.
The figure compares with 550,000 units of Model 3 and Model Y capacity at Tesla‘s Fremont factory and 375,000 Model Y units at its Berlin facility.
“We will never achieve the cost-effectiveness of Shanghai, but a car from China must be shipped to Europe and subjected to import duties,” Thierig admitted.
However, “as long as we do not exceed this threshold, we have a good business model with production in Germany.”
The comparison takes on added weight as Chinese automakers continue to expand aggressively into Europe.
According to ACEA data from April, BYD registered 27,008 vehicles across the EU, EFTA, and UK that month — a 114.5% year-over-year increase — while Chery Automobile posted registrations of 24,398 units, up 322.3% from a year earlier.
However, contrary to Tesla, these companies produce both battery electric (BEV) and plug-in electric (PHEV) vehicles — which, unlike Chinese EVs, do not face the steep import duties imposed by the European Commission in late 2024.
Battery Cell Expansion
Tesla more than doubled its battery cell output target at the Berlin site last month, scaling planned annual capacity from 8 GWh to 18 GWh — with an additional investment of nearly $250 million.
The latest commitment brought the company’s cumulative spending on Berlin cell manufacturing to approximately $1.45 billion.
The expanded cell factory is expected to come online in the first half of 2027.
Tesla said the full facility will produce both battery cells and finished vehicles at a single location — something the company described as unprecedented in Europe.
In the interview, Thierig framed the expansion as part of a broader push to make Tesla0s regional factories more self-sufficient.
“In the future, we want regions and factories to become more independent in their supply chains, including battery cells,” he said. “At present, we are still transporting cells and batteries across continents.”
Thierig explained that cells are currently sourced from Texas and used to manufacture batteries locally in Berlin, while complete battery packs are also received from Shanghai.
“The past few years have shown how volatile global supply chains can be,” he noted. “That is why we want to secure regional cell production.”
Asked whether the investment makes business sense, Thierig was direct.
“Of course, if only because it is strategically correct. We want to have competence in the region,” he stated. “In addition, resilience and localization are always at the forefront of our minds.”
Depending on the variant, 18 GWh per year would supply approximately 250,000 Model Y units.
Thierig said no further expansion is planned for now, while acknowledging that the cell factory’s footprint could accommodate additional capacity in the future.
A Tech Company That Builds Cars
Thierig addressed the question of Tesla‘s identity directly when asked whether the company is still an automaker.
“We are a tech company. But I see us building cars for a very long time,” he said. “Individual mobility will continue to exist, whether autonomous or human-controlled. Of course, we have other business areas that can grow strongly: AI, robotics, energy.”
On whether European approval of Tesla‘s Full Self-Driving (Supervised) driver-assistance software could meaningfully boost Model Y demand, Thierig declined to offer a specific forecast but said the technology speaks for itself once experienced firsthand.
“A concrete forecast would be dubious,” he said. “But we see that vehicles with the FSD feature enabled are much safer on the road than those driven by humans. You have to experience FSD as it’s hard to describe. When approval comes, there will be a clear adaptation curve, with a positive effect on demand as well.”
Tesla‘s FSD software is currently available in three European countries, including the Netherlands, Lithuania and, more recently, Estonia.
