Tesla To Open European Research & Development (R&D) Center In Berlin

According to foreign media reports, Tesla plans to establish a European center in Berlin, Germany, which will focus on materials research as well as the development of vehicles and powertrain systems.

Image source: Tesla

The R&D center will be located on a former industrial site of approximately 20,000 square meters (about 215,280 square feet) in Köpenick, eastern Berlin. Before finally selecting Köpenick, Tesla had considered more than 30 potential locations and even contemplated building the center from scratch. It is reported that the reasons for choosing this site include its adequate size, sufficient energy supply, and its advantageous geographic location between Berlin and Grünheide. Oliver Igel, the district mayor of Treptow-Köpenick, stated that Tesla’s choice of this location was very wise and noted that the district had been in related discussions with Tesla since October 2024.

The Berlin Economic Development Agency Berlin Partner also welcomed this decision. The agency's CEO, Stefan Franzke, stated that the establishment of this research and development center will bring significant opportunities for Berlin and Germany to advance alternative powertrain and battery technologies. At the same time, Stefan Franzke added that Tesla's move demonstrates that Berlin, as a European innovation hub, possesses favorable conditions to compete.

In addition, Tesla executive Lars Moravy revealed that approximately 130 engineers currently working at the Grünheide production plant near Berlin will initially relocate to Köpenick; in the future, the number of employees at this center is expected to increase to around 250.

At the same time Tesla announced the above plan, its European sales have declined for eight consecutive months due to outdated models and competitive pressure from Chinese rivals. Matthias Schmidt, an automotive market analyst at Schmidt Automotive in Europe, recently told European Automotive News, "One reason we continue to see Tesla's sales falling short of expectations is the increasingly intense competitive environment in the current market."

In January this year, Tesla began producing the facelifted Model Y for the European market at its Berlin factory. In May, the company announced plans to double the production capacity of the Grünheide plant while expanding logistics and battery capacity.

However, the Tesla Grünheide factory, which was completed in 2022, has long been criticized by local residents and environmental organizations for issues related to land use, water consumption, and compliance. Local activists have documented violations of building and environmental regulations at the factory and have continuously opposed its expansion and the construction of new transport routes that would involve additional deforestation. In July this year, Tesla and the local water company adjusted their supply contract: Tesla agreed to relinquish about one-third of its allocated water quota to free up more supply capacity for residents or other industries.