Production in Mexico was previously planned
Tesla’s planned entry-level model for $25,000 will apparently also be built in the Gigafactory Berlin. Elon Musk allegedly said this during a visit to Grünheide. This is not officially guaranteed, but it is reported by a user on Platform X (formerly Twitter) who specializes in news about the German Gigafactory.
Reuters also confirms the news. The renowned news agency quotes an anonymous insider. Tesla boss Elon Musk then visited the factory on Friday and thanked the employees for their hard work. On this occasion he also informed the workforce about the plans to build the $25,000 vehicle in Grünheide. The source did not say when the car would be built in Grünheide.
Currently only the Tesla Model Y is being built in Berlin. If the entry-level model announced at Battery Day in 2020 for $25,000 is to be built there, the production facilities would probably have to be significantly modified. The middle part of the body is supposed to be manufactured in one step using “gigacasting”.
With a model for just $25,000 (or euros, as the X user and Reuters now writes), Tesla would penetrate the mass market. So far, the brand’s cheapest model in Germany (the Model 3 Highland ) costs 46,648 euros before subsidies.
With a car costing 25,000 euros, the entry-level Tesla would be one of the cheapest electric cars . And Tesla could probably come closer to its goal of increasing deliveries to 20 million by 2030. Tesla plans to deliver 1.5 million electric cars this year. The production capacity of the Grünheide plant was recently reported as 375,000 units. But Elon Musk wants to increase production to one million vehicles per year.
In March it was said that the entry-level Tesla (also referred to as the “next gen vehicle”) would be built in the new Gigafactory in Mexico ; this location would probably have the advantage of low labor costs. Recently there were also rumors about production in Austin (Texas). But Europe would probably be more suitable as a place of production for a small car – in the USA, small cars are considered exotic, but in Europe they are among the best-selling models. In addition, the Gigafactory Texas is still busy with the upcoming Cybertruck and the Gigafactory in Mexico has yet to be built.
