Tesla plans to raise production levels at its German manufacturing hub throughout the remainder of the year, spurred by higher sales of vehicles made at the plant.

The plans were shared by the factory's head to Germany's DPA news agency, as per  a report by Reuters.

The American electric vehicle (EV) maker is said to be navigating a competitive landscape in Germany, where it faces intense rivalry from Chinese automakers.

Analysts have speculated that the political engagements of Tesla's CEO, Elon Musk, may have influenced consumer demand, given his political endorsements.

Despite this, the company has signalled optimism, noting encouraging trends across all markets served by the Gruenheide plant, not just within Germany.

André Thierig, who manages the Gruenheide plant outside Berlin, told the German news agency: “We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.

He added: "We supply well over 30 markets and definitely see a positive trend there.”

According to the KBA road transport agency, Tesla's sales in July experienced a significant drop, with 1,110 vehicles sold.

Furthermore, the sales tally for the period from January to July showed a 57.8% decline.

Tesla sold 384,122 cars in the second quarter (Q2), down around 60,000 cars, or 13.5% from the sales total a year ago, marking the company’s largest year-over-year sales decline to date.

It reported a 12% year-on-year decrease in total revenue for Q2 2025, with figures falling to $22.49bn from $25.5bn in the same period last year.

The company has experienced a continued downturn in sales across several European markets in August, marking the eighth consecutive month of year-on-year declines.

However, in Norway, Tesla has seen a 21.3% surge in registrations, indicating a sustained stronghold in markets with a strong EV presence.