Tesla's German story in September 2025 is one of sharp contrasts: record production investments alongside the steepest sales decline in the company's European history.
New Research Center in Berlin-Köpenick
Tesla confirmed plans for a European research and development center in Berlin-Köpenick, located roughly 20 kilometres from its Grünheide manufacturing plant. The facility will initially house 130 engineers relocating from Grünheide and smaller Berlin offices, with plans to grow to approximately 250 staff.
The center will focus on materials research, vehicle development, and powertrain engineering. Chief Technology Officer Lars Moravy confirmed a "double-digit million" euro investment, though Tesla declined to share exact figures. Berlin's Economic Senator Franziska Giffey described the center as a "lighthouse" for the region's R&D landscape, with completion targeted for 2026.
The Sales Reality
The investment comes against grim sales numbers. Through August 2025, Tesla registered just 11,441 vehicles in Germany — a 56.1% plunge from the same period in 2024. In August alone, only 1,441 Teslas were registered, down 39% year-over-year.
| Period | Tesla Germany Registrations | YoY Change |
|---|---|---|
| August 2025 | 1,441 | -39% |
| Jan-Aug 2025 | 11,441 | -56.1% |
| German EV market (Aug) | 39,367 | +45.7% |
The decline is particularly stark because the German EV market is booming — August saw 39,367 new battery-electric registrations, up 45.7%. Tesla's market share in Germany has shrunk to just 0.6%.
Gigafactory Grünheide: Cautious Optimism
Factory manager Andre Thierig struck an optimistic tone despite the numbers, citing "very good signals" for the plant. The facility employs approximately 11,000 people and supplies more than 30 markets globally. Total Model Y production has surpassed 500,000 units, including 100,000 of the refreshed 2025 model.
Thierig noted production targets have been revised upward for Q3 and Q4, though the planned facility expansion remains on hold due to market uncertainty. He warned that ongoing debate about the EU's 2035 combustion engine ban could "considerably damage" the electric vehicle industry in eastern Germany, where the factory is a major employer.
Update: Tesla delivered 497,099 vehicles globally in Q3 2025, its best quarter of the year. However, full-year 2025 deliveries declined 9.1% from 2024. The Berlin-Kopenick R&D center remains on track for 2026 completion.