- Tesla plans to build a more reasonably priced electric car at its factory close to Berlin.
- For Tesla, this is a big step forward in encouraging a broader market for its electric cars.
- Tesla’s plan to enter the mass market is essential to reaching its target of producing 20 million cars by 2030.
The pioneer of electric vehicles, Tesla, plans to build a more reasonably priced electric car at its factory close to Berlin, priced at 25,000 euros (roughly $26,838).
For Tesla, this is a big step forward in encouraging a broader market for its electric cars. Elevated interest rates combined with the high cost of electric cars are preventing their widespread adoption in Europe and the US.
Inexpensive vehicle
A retail electric car in Europe cost more than 65,000 euros ($69,000) on average in the first half of 2023, but in China, the average cost was slightly more than 31,000 euros ($33,000).
Elon Musk, the CEO of Tesla, has stated his goal to create an electric vehicle that is more reasonably priced. In September, insider information surfaced, indicating that Tesla has made considerable strides toward developing a technology that would allow almost all of an electric vehicle’s underbody to be cast in one piece, increasing production efficiency and eliminating costs.
Setting itself apart from rivals like Volkswagen, Tesla’s plan to enter the mass market is essential to reaching its target of producing 20 million cars by 2030.
To produce up to one million vehicles a year, Tesla intends to double the manufacturing capacity of its German facility. A decision about whether to approve the expansion is still pending.
Local authorities in Germany have asked Tesla for more information about how their expansion plans comply with conservation laws. Furthermore, Tesla declared that all employees will receive a pay increase of four percent beginning in November and an extra 2,500 euros ($2,600) annually for production workers beginning in February 2024.
