Tesla's Giga Berlin Shifts Gears: Cuts Temp Workers But Keeps Production Goals Intact

EV giant Tesla Inc (NASDAQ:TSLA) is reportedly scaling back on hiring temporary workers at its Gigafactory in Brandenburg, Berlin. 

What Happened: According to the German publication RBB24, Tesla will be hiring fewer temporary workers and reducing shifts compared to the initial ramp-up phase. However, the company assured that it remains committed to its production targets. 

Tesla stated that while temporary workers will still be required, the company’s need will be lower than during the initial ramp-up period, as the Gigafactory continues to scale up successfully, as reported by DPA. 

In addition, Tesla will be cutting extra shifts on Saturdays in the second quarter and reducing the regular three shifts at the factory to two and a half, as reported by Business Insider. 

Why It Matters: Tesla added a third shift at the Gigafactory in April, with plans to potentially introduce a fourth shift to boost production. 

In March, the company applied to expand production at the Gigafactory to one million vehicles per year from the current 500,000 per year. 

However, Tesla has not yet reached the half-million mark at the plant. Therefore, for the first stage of expansion, the target is to reach 500,000 units per year, equivalent to approximately 10,000 cars per week, according to RBB24. 

The Gigafactory achieved a weekly production capacity of 5,000 vehicles, one year after delivering its first vehicles to customers in late March.

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