Environmentalists had gone to court in the eastern city of Frankfurt an der Oder in an attempt to stop Tesla from clearing the forest, arguing that cutting down more trees could endanger hibernating reptiles.
A temporary halt in clearing had been in force while a regional court studied the matter.
In Friday’s ruling, the Berlin-Brandenburg Higher Administrative Court said it would ban clearing by Tesla in peripheral areas of the site, ruling in favor of environmentalists.
But the court said the stoppage for the rest of the area could not be justified.
(Reporting by Ralf Bode and Tom Sims; Editing by Alistair Bell)