Tesla (XNAS-TSLA) is set to ramp up electric vehicle production at its Berlin Gigafactory through year end, driven by robust demand for its models, according to factory manager André Thierig. The updated production strategy reflects Tesla’s response to sustained consumer interest, despite broader market challenges across Europe.
The announcement comes amid a broader decline in Tesla sales across several European markets. In the Netherlands, registrations through August totaled just over 8,000 vehicles down sharply from more than 16,000 during the same period last year. Similar trends are evident in Germany, Denmark, and Belgium, where Tesla’s sales have reportedly halved.
The company’s waning performance in Europe has been partially attributed to CEO Elon Musk’s controversial political involvement. Musk has advised U.S. President Donald Trump and implemented cost cutting measures that have drawn criticism. His public support for right political parties including Germany’s Alternative für Deutschland and France’s Rassemblement National has also sparked backlash. Additionally, Musk has called for new elections in the United Kingdom, further fueling political tensions.
Despite these headwinds, Tesla is seeing pockets of growth. In Norway, sales have risen 26% this year, reaching over 16,000 units. In Turkey, Tesla has already sold more than 25,000 vehicles through August. The Model Y ranks fourth in overall sales and was the country’s best selling car in August.