German Tesla factory boss is optimistic about future demand

The head of Tesla's German gigafactory has expressed optimism for the plant near Berlin, despite challenging market conditions.

"We currently have very good sales figures and have therefore revised our production plans upwards for the third and fourth quarters," plant manager André Thierig told dpa recently.

"(We) are looking at how the market is developing and continue to see positive signals for all the markets we supply," Thierig added. "Of course, this goes far beyond Germany. We supply well over 30 markets and definitely see a positive trend there."

The German market poses challenges for Tesla. While electric vehicle registrations increased in Germany in August compared to last year, Tesla's sales declined according to the Federal Motor Transport Authority.

About 1,400 Tesla vehicles were registered, marking a nearly 40% decrease from the previous year. Meanwhile, Chinese electric model competitors are gaining ground in Germany.

Sales of electric cars dropped last year after subsidies were removed. The government had aimed to promote e-mobility with purchase incentives. For one thing, companies are expected to be offered tax breaks for buying electric cars.

By 2035, combustion engines are set to be banned in the European Union, however the measure is being debated. Thierig warned Berlin that such discussions could threaten the EV industry in eastern Germany and called for the government to give clear support for electric vehicles.

Since March 2022, Tesla has been manufacturing electric cars in Grünheide near Berlin, employing around 11,000 workers. Environmentalists express concerns as the factory is partly located in a water protection area. The plant's expansion plans are on hold due to market conditions, although a freight rail station is planned.