Sales Drop, Tesla Even Increases Car Production In Germany, What's Up?

Tesla's Gigafactory in Germany. (Photo: Tesla)

JAKARTA Tesla plans to increase production capacity in the Berlin Gigafactory, Germany, until the end of next year. This step will make the Tesla flagship plant produce more vehicles to meet global demand.

Citing the ArenaEV report, Thursday, September 18, this plan is actually inversely proportional to the situation where the Tesla market in Germany is declining sharply. In the first seven months of this year, Tesla's sales in the country fell 57.8 percent compared to the same period in 2024 which was a significant annual decline.

However, Tesla insists this increase in production is not to pursue the German market, but to meet the surge in demand from the global market.

"Currently our global sales figures are very good. Therefore, we are revising the production plan for the third and fourth quarters to be higher," said Total Thierig, Head of Tesla Production Germany.

Supplying The World Market

Berlin's Gigafactory currently supplies vehicles to more than 37 global markets, covering Europe, the Middle East, and Taiwan. The factory only produces Tesla Model Y, a flagship crossover that was previously the best-selling car in Europe and even the world.

However, the dominance of the Model Y is starting to get pressure from a number of new rivals. From China there are BYD Sealion 7 and Xpeng G7, while from South Korea there are Kia EV6 and Hyundai Ioniq 5 who are both serious challengers in the electric car segment.

Tesla's move to increase production is an important strategy to maintain competitiveness amid the stiff competition of the global EV market.