Tesla's Berlin gigafactory, which can produce up to 2m cars a year, is expected to go into production next year to produce the Model Y for the local market.The assessment suggests that Tesla's manufacturing gap with other German carmakers is about to close.

    July 22, Beijing time - According to a recent report in the German media, the prospects for Tesla and its car manufacturing goals in Europe are surprisingly optimistic.According to sources familiar with the electric carmaker's plans, Gigafacture Berlin could produce up to 2m vehicles a year.

     Notably, that is more than twice the output of Vw's Wolfsburg plant, one of the biggest in the car industry.

    According to German news outlet Focus.de, Tesla expects the European electric car market to reach about 12 million units.

    Tesla did not respond to Focus. DE's findings, but operating at a rate of 2 million vehicles a year would give the electric carmaker a 16% share of the European electric vehicle market.It's a big part of the region's electric vehicle market, and European results are likely to boost Tesla's Numbers significantly.

    So far, applications for the plant have included a target of 500,000 cars a year.Still, gigafactory Berlin is located on a vast tract of land, and with Tesla's battery technology and manufacturing innovations of recent years, a plant capable of producing 500,000 cars a year is likely to represent only a small part of the site.

    The Gigafactory Berlin will be located on 300 hectares of land, which means Tesla has plenty of room to build other manufacturing facilities.

    Shanghai's Gigafactory, for example, covers only 86 hectares.If the expansion is completed, the plant could produce more than 500,000 Model 3 and Model Y cars a year.

    Given that, perhaps 2 million cars a year at Gigafactory Berlin would not be too far-fetched.

    Gigafactory Berlin is expected to start production next year, producing the Model Y for the local market.

    That would give Tesla an edge over rivals in the region, with models built at Grunheide combining Silicon Valley technology with the craftsmanship of Germany's established car industry.It's a tough combination for the rest of the industry.

    Tesla is already an excellent car.Despite the technological lead, however, the company's cars still have room for improvement.

    In a review of the Model Y in May, for example, Der Spiegel Online, a German news publication, argued that the car's technology and performance were hampered by manufacturing processes, and that it was still built by Volkswagen, a local carmaker.

    That gap, however, is about to close.Tesla has a good chance that the Model Y produced by Gigafactory Berlin will match the standards and quality of other German carmakers.