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Tesla Boosts German Battery Investment to About €1 Billion, Sets 2027 Start for Cell Production

The project deepens Tesla’s European supply chain by localizing high-cost battery components.

A Tesla service center in Los Angeles, California, U.S., November 6, 2025. REUTERS/Mike Blake/File Photo

Overview

  • Tesla plans to make up to 8 GWh of battery cells per year at its Gruenheide site beginning in 2027, according to a statement cited by Reuters.
  • The company is adding a further three‑digit‑million‑euro sum, lifting total spending on the local cell factory to roughly €1 billion.
  • Tesla shares rose about 2.15% to roughly $486 following reports of the expanded battery investment in Germany.
  • Plant head André Thierig said permits for cell production are in place, the ramp will create hundreds of jobs, and operations will not increase water use.
  • The expansion supports vertical integration and supply resilience as the EU unveils a €1.8 billion Battery Booster that offers interest‑free loans to cell producers.