Tesla is preparing plans to expand its Gigafactory in Grünheide, Germany, with a new production hall and additional infrastructure, according to reports by German media outlets RBB and Märkische Oderzeitung.
According to RBB, Tesla intends to submit the plans for approval in December. The proposed development would include a production hall north of the existing facility, with a reported floor area of approximately 536,000 square metres. That would make it more than twice the size of the current 219,000-square-metre production hall.
Construction of the new building could begin in 2027, although the plans remain subject to the relevant approval procedures.
Long-Term Production Capacity
Tesla’s Grünheide factory currently has the capacity to produce up to 375,000 Model Y vehicles annually. The company’s longer-term ambition is to increase the site’s potential output to as many as one million vehicles per year, a target that has been discussed for several years.
A preliminary expansion approval was granted in 2024 as part of the broader development process. However, Tesla has not publicly detailed how the latest plans would affect production schedules or employment.
Around 12,000 people currently work at the German factory. According to RBB, Tesla has not provided specific information about potential additional staffing requirements.
The vehicle models intended for the proposed hall have also not been confirmed. Märkische Oderzeitung, citing observers, reported that a model in addition to the Model Y could eventually be manufactured at the site.
Expansion to Proceed in Three Phases
The planned development is divided into three phases, each requiring a separate partial approval.
The first phase, approved by the Brandenburg State Office for the Environment in October 2024, focused on modernising the existing production hall and adding storage and logistics capacity within the factory grounds.
The second phase centres on the construction of the additional production hall. The third phase is expected to cover factory equipment and a freight railway station within the site.
Tesla submitted its initial expansion application in March 2023. Earlier reporting by Märkische Oderzeitung indicated that the development involved approximately 70 hectares in the northern part of the property. Although some land-clearing work was covered by the existing development plan, the additional construction required a separate application.
RBB reports that applications for all three phases were submitted as partial approvals in 2023, but further documentation is still required for the second and third phases.
Water Management and Wastewater Treatment
Water supply and wastewater management remain important considerations in the expansion plans. The proposed development includes an additional water circuit and wastewater treatment facilities on the factory premises.
RBB reported that the new hall and additional employees would increase overall water consumption, but that on-site treatment is intended to prevent an increase in sanitary wastewater discharged from the facility.
The report states:
The new hall and additional employees would indeed consume more water overall than before – however, due to in-house treatment, no additional sanitary wastewater would be generated. Consequently, the quantities of fresh and wastewater contractually agreed with the Wasserverband Strausberg-Erkner (WSE) should also suffice for the further expansion. The expanded wastewater treatment would be an in-house effort by Tesla on the factory premises.
The proposed system is intended to allow the factory to expand while remaining within its contractually agreed fresh-water and wastewater volumes with the Wasserverband Strausberg-Erkner, the regional water utility.
Approval Process Remains Ongoing
The proposed production hall represents a substantial potential expansion of Tesla’s German manufacturing operations, but the project remains dependent on further planning documentation and regulatory approvals.
The final production capacity, vehicle mix, staffing implications and construction schedule have not yet been confirmed. Tesla’s December submission, if completed as reported, would provide further detail on the scope of the second phase and the infrastructure required to support the factory’s long-term development.