GRUNHEIDE, Germany—Tesla’s plant near Berlin has started producing updated Model Y vehicles. However, the official production launch has not yet been announced, and the new model is not available for order, according to a company spokeswoman.

The Model Y, the most-produced electric car globally, is a cornerstone of Tesla’s strategy to regain growth momentum. The company experienced its first annual sales decline in 2024, delivering 1.79 million vehicles, about 19,000 fewer than in 2023. In Germany, Tesla’s new vehicle registrations fell by 26,000 in 2024 compared to the previous year, as the company dropped to third place in the country’s EV market behind Volkswagen and BMW.

Tesla’s sole European factory, the Berlin-based Gigafactory, employs approximately 11,000 workers and supplies vehicles to Europe, the Middle East, and Taiwan.