BERLIN, April 23 (Reuters) - Tesla will create 1,000 new jobs at its German gigafactory by the end of June in order to increase weekly production by about 20% from the third quarter, a spokesperson said on Thursday.

The decision is a direct response to increased demand for the Model Y, and recruitment for the plant in Gruenheide near Berlin is scheduled to begin in May, the spokesperson added.

As part of the production ramp-up, around 500 employees on temporary contracts are expected to be taken on permanently in the course of this year.

The spokesperson said that separately, a search had begun for several hundred new employees for battery cell production, which is scheduled to start in the first half of 2027.

The Gruenheide plant, which employs around 11,500 staff, is Tesla's only gigafactory in Europe, a market where the U.S. electric vehicle pioneer has faced dwindling market share.