This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) said it will put about $250 million into its Berlin gigafactory to expand battery-cell production and tighten its European supply chain. At the Grunheide site, Tesla said the upgrade should lift annual battery-cell capacity to 18 gigawatt hours from 8 GWh.
This is the latest step in Tesla’s plan to bring more of its battery work and vehicle assembly under one roof in Germany. Tesla had already outlined close to 1 billion euros in spending at the site in December, and it said the new push is meant to support a more integrated production setup.
Tesla said the expansion should create more than 1,500 jobs in battery-cell production. The Berlin plant, Tesla’s only gigafactory in Europe, opened in 2022 and supplies Model Y vehicles to several European markets as well as India.
Tesla said the factory hit a record first-quarter output, while local manager Andre Thierig said the new investment comes during a difficult stretch for German industry. The move also comes as Tesla works to raise Model Y production, expand staffing at the site, and convert some temporary workers into permanent staff over the next year.
