REVOLUTIONARY: Elon Musk's Tesla to produce cheapest EV's in Germany, sources
Average price for EVs in Europe is 65,000 euros in the first half of 2023, in contrast to 31,000 euros in China
November 06, 2023
Tesla is reportedly planning to produce a 25,000-euro ($26,838) electric car at its factory near Berlin, aiming to address the issue of high electric vehicle (EV) prices that have hindered adoption in Europe and the United States.
While the source didn't specify when production would commence, this development signifies Tesla's pursuit of mass EV adoption.
The average retail price for EVs in Europe has been notably high, exceeding 65,000 euros in the first half of 2023, in contrast to approximately 31,000 euros in China.
Tesla's CEO, Elon Musk, had previously aimed to create a more affordable electric car but delayed the plan, citing technology challenges. However, in September, it was reported that the company was nearing an innovation that could streamline production and reduce costs.
Entering the mass market is crucial for Tesla to reach its target of delivering 20 million vehicles by 2030, setting it apart from competitors like Volkswagen that focus on profit margins and don't set specific delivery goals.
Musk recently visited the Gruenheide plant in Germany, where he reportedly announced plans to produce the 25,000-euro vehicle. The German factory currently manufactures the Model Y, which has been a successful EV in Europe. Tesla plans to double the plant's capacity to produce one million vehicles annually.
In response to worker demands, Tesla also announced a 4% wage increase for all employees starting in November, with production workers receiving an additional 2,500 euros per year starting from February 2024, equivalent to an 18% pay increase within 1-1/2 years.
German union IG Metall had previously highlighted that Tesla's wages were about 20% lower than the collective bargaining agreements at other car manufacturers.
This move by Tesla is a significant step toward addressing price barriers and increasing its market share in the electric vehicle sector, which could lead to greater adoption of EVs in Europe and the United States.
