Tesla Cuts 1,712 Jobs at Berlin Gigafactory as Europe Sales Drop 50%
Internal Handelsblatt documents show Tesla cut 1,712 jobs at its Berlin Gigafactory, lowering headcount from 12,415 in 2024 to 10,703 currently, despite prior company denials. The reduction coincides with a 50% drop in Tesla’s European vehicle sales, allowing BYD to overtake it as the world’s top EV maker.
1. Tesla’s Robotaxi Network to Expand Nationwide by Year-End
During his Davos appearance, CEO Elon Musk reiterated that Tesla’s robotaxi service, which commenced in Austin in June 2025 with human safety operators, will be “very, very widespread” across the U.S. by the end of 2026. This follows a limited launch of ride-share operations in San Francisco and comes despite the company still lacking regulatory approval for fully driverless tests without a human behind the wheel. Tesla aims to field at least 500 robotaxis in Austin and 1,000 in Silicon Valley by year-end, underpinning its ambition to capture a sizable share of ride-hailing demand and drive a new recurring-revenue stream.
2. Full Self-Driving Approval Expected in Europe and China
Musk revealed he anticipates European regulators will grant approval for Tesla’s Full Self-Driving (FSD) advanced driver-assistance system by next month, with Chinese certification following soon after. European approval would unlock the potential for rapid FSD rollout across multiple markets, enhancing utilization of Tesla’s existing fleet and strengthening the case for subscription-based FSD revenues. Investors view regulatory clearance as a key catalyst, potentially accelerating adoption rates and supporting margin expansion as software sales carry higher profit per vehicle.
3. Q4 Earnings Preview: Energy Storage Offsets Auto Headwinds
Analysts expect Tesla’s upcoming Q4 report to show softer automotive volumes due to elevated pricing pressures and slowing EV sales growth, while its energy storage segment—bolstered by a record deployment of Megapack and Powerwall units—should deliver robust revenue gains. Consensus forecasts project the energy business could contribute roughly one-quarter of total revenue, making it the fastest-growing division in the quarter. Investors will scrutinize gross margins and delivery guidance for hints of stabilization in vehicle profitability alongside updates on new factory ramps.
4. Berlin Gigafactory Workforce Reduced by Over 1,700
Internal documents reviewed by Handelsblatt indicate Tesla’s Gigafactory near Berlin saw its headcount fall from approximately 12,400 to just over 10,700 employees between 2024 and early 2026, a reduction of roughly 1,700 roles. This follows last year’s 10% workforce trimming and comes despite company statements assuring that staffing levels remain stable. The cuts coincide with a nearly 50% drop in European deliveries, raising concerns about regional demand challenges and prompting investors to reassess production planning and cost management strategies in key overseas markets.