Amid a sharp drop in European sales to 235,000 vehicles in 2025 and ongoing labor tensions—including recent anti-union efforts like a December rally—Tesla is questioning the future of its Gigafactory Berlin. The plant's 375,000+ annual Model Y capacity now burdens the company, with management warning that IG Metall union gains in upcoming works council elections could end investments.
Tesla's Gigafactory Berlin in Grünheide, Germany, opened recently to serve Europe efficiently but now faces viability issues due to collapsed demand. European sales of 235,000 Teslas in 2025—including imports—fell below pre-plant import levels from 2022, despite the factory's capacity for over 375,000 Model Ys yearly.
Global reallocations offered limited relief, such as minor shipments to Canada (7,703 Model Ys and 1,451 Model 3s) amid tariffs. Following awkward anti-union initiatives like the December 2025 'Giga-Event,' factory director André Thierig has escalated rhetoric. Citing Handelsblatt, he warned that IG Metall influence in works council elections could halt investments, comparing Grünheide's productivity unfavorably to U.S. and Chinese sites.
Analysts suspect this blames labor for demand shortfalls. Meanwhile, rival BYD advances European factory plans, underscoring EV market shifts.
