Tesla’s manufacturing facility in Grünheide, Germany, reported higher net profit for the 2025 fiscal year despite declines in both vehicle production and revenue, while outlining plans to increase output and expand battery cell manufacturing.
According to the annual report of Tesla Manufacturing Brandenburg SE, the company recorded net profit of €77.1 million in 2025, compared with €56.8 million a year earlier.
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Revenue declined to approximately €7.1 billion from about €7.7 billion in the previous fiscal year.
Production Declines During Model Y Transition
The Grünheide factory produced around 202,000 vehicles during 2025, down from approximately 211,000 units in 2024, while plant utilization fell from 56% to 54%.
The reduction was partly attributed to production line modifications to accommodate updated versions of the Model Y, including the Performance variant and an export model for the Canadian market.
The factory currently manufactures only the Model Y and employed around 11,000 people, including temporary workers, at the end of 2025.
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Tesla said it expects significantly higher production volumes during 2026 and plans to gradually increase output to 7,500 vehicles per week, equivalent to as many as 375,000 vehicles annually.
To support the planned production increase, the company intends to recruit an additional 2,000 employees in stages, including 1,000 workers dedicated to vehicle manufacturing.
The Grünheide facility currently supplies more than 30 international markets, with further market expansion planned.
Battery Cell Expansion Continues
Alongside vehicle production, Tesla is also expanding battery cell manufacturing at the German site.
The company has increased its planned annual battery production capacity from 8 GWh to 18 GWh and announced an additional investment of $250 million in the project.
Battery cell production is scheduled to begin during the first half of 2027, with approximately 1,500 new jobs expected to be created.
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Tesla said expanding battery manufacturing will allow the Grünheide site to cover a larger portion of the electric vehicle value chain, from battery production to finished vehicles.
The company also noted that geopolitical tensions, supply chain disruptions and broader economic conditions remain potential risks for the expansion plans, particularly as competition in global battery manufacturing continues to intensify.
