TSLA, steered by the visionary Elon Musk, is gearing up to double the size of its Berlin factory. The ambitious plan aims to churn out up to one million electric vehicles annually, potentially transforming the facility into Germany’s largest auto manufacturing plant. 

Tesla is due to report its quarterly financial results after the market close on Wednesday, July 19, and its shares are up 168% so far this year. 

Expansion Plans And Public Participation 

The electric vehicle giant has applied to increase its production capacity at its existing factory in the eastern state of Brandenburg. The expansion plan includes not only vehicles but also battery production, The Wall Street Journal reports. The company has received preliminary approval for some changes to the plant, but full approval is pending the completion of an environmental impact study, which will be open for input from local citizens. 

According to the Brandenburg Ministry of the Environment, public participation in the approval process for the expansion of the Tesla factory in Grünheide will commence from July 19, 2023. The expansion will also be accompanied by an increase in battery storage production capacity from the current 50 to 100 gigawatt-hours per year in the future. 

Workforce Concerns And Market Impact 

Germany’s top union, IG Metall, has voiced concerns over staffing conditions at Tesla’s German gigafactory as it prepares to expand. The union has called for improved working conditions, especially in light of the recent layoffs of around 200 permanent staff and a significant number of temporary workers in June alone. Despite these layoffs, Tesla’s production goal of 5,000 cars per week remains unchanged. 

Although Tesla’s overall sales are still dwarfed by Germany’s big auto brands, Tesla’s Model Y and Model 3 were the bestselling all-electric vehicles in Europe in the first quarter. This success has allowed Tesla to outpace Volkswagen’s ID.3 and ID.4. In the first five months of the year, Tesla sold 138,294 new cars in the European Union, its free trade association partners, and the U.K., growing its share of total new vehicle sales in the region to 2.6%. 

The European market for electric vehicles has slowed somewhat, but sales growth remains strong. During the first five months of this year, sales of all-electric vehicles rose 42.3% to 730,137 vehicles in the EU, EFTA, and the U.K., according to data from the European Automobile Manufacturers’ Association.