The Tesla factory in Germany will have an annual output of more than 200,000 vehicles, while according to the company its capacity is for 500,000 cars per year or almost 10,000 cars per week.

The Berlin plant produces nearly 33% of total Model Y production, with the other two-thirds being made at the Shanghai plant which assembles 13,000 cars a week.

The increase in production in Germany will allow Elon Musk to push more cars from Shanghai to markets outside Europe, as production at Tesla's Giga factory in Germany is believed to be able to meet European demand.

Tesla has also started assembling batteries in Germany that will soon be used in vehicles produced at the factory, although this part of the production will be mainly focused in the US, due to increased financial incentives.