This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) stock rose 1% on early Monday after it announced to plan to increase production at its Gigafactory Berlin-Brandenburg in Germany as demand for the Model Y strengthens across Europe.
Tesla is targeting production of about 7,500 vehicles per week at the facility, equivalent to an annualized pace of roughly 375,000 vehicles, or about 20% above current output. The Berlin plant manufactures the Model Y for European customers and also serves as an export hub for more than 30 international markets.
To support the expansion, Tesla intends to add about 3,500 employees over the short to medium term across vehicle assembly and battery cell operations. Around 1,000 of those positions are expected to be tied directly to the planned production increase. The hiring effort follows earlier workforce additions and the conversion of temporary employees into permanent staff.
The higher production target follows weaker output and revenue at the Berlin factory in 2025, although profitability improved during that period. Greater utilization of the facility could help Tesla reduce reliance on vehicle imports from China and the United States while improving supply flexibility and supporting its competitive position in the European electric vehicle market.