According to a report by Reuters during a recent visit to the facility, CEO Musk unveiled an ambition to create a 25,000-euro automobile. The plant is presently producing the Model Y and is expected to expand.
On Monday, a source with knowledge of the situation informed that Tesla is planning to manufacture an automobile that will retail for 25,000 Euro ($26,838) at its factory near Berlin. This is a highly anticipated development for the electric car company that is seeking to make its vehicles more widespread.
The individual, who chose not to be identified, did not indicate when the manufacturing process would start.
Elon Musk, the Chief Executive, journeyed to the Gruenheide plant on Friday and expressed his gratitude to the employees for their efforts. This was showcased in a video on social media outlet X.
At the assembly, the source reported that he had discussed the plan to construct the 25,000-euro car at the same spot.
The Model Y, Europe’s most popular electric vehicle, is manufactured by the German manufacturing plant.
Elon Musk had envisioned manufacturing an inexpensive electric car for a long time, however, he revealed in 2022 that he had yet to perfect the technology and decided to put the project on hold.
In September, Reuters reported that Tesla was making progress on a development that would enable them to die cast the majority of the EV underbody in a single part, enabling faster production and cost reduction.
Achieving the goal of 20 million vehicle deliveries by 2030 would require a foray into the mass market, a tenfold increase from existing capacity.
The electric vehicle market has been affected by a weakened economy and high interest rates, causing Tesla and other companies to reduce their prices in an effort to increase sales recently.
Tesla has applied for permission to double the capacity of its German plant to 1 million cars per year. The company has not revealed how many cars it is currently producing in the facility, but back in March it was reported that it had manufactured 5,000 vehicles in a single week, which would be the equivalent of around 250,000 each year.
Back in October, local government officials stated that they had requested the car manufacturer to provide additional details about how its growth plans would abide by wildlife conservation laws. Afterwards, they declared they would make a call regarding the approval of the plans, although they did not specify a date.
Tesla declared to their staff on Friday that everyone will have their wages increased by 4% as of November, and factory workers will be given an additional €2,500 per annum starting from February 2024 – or a total 18% salary rise in a year and a half.
IG Metall, a German trade union, declared in 2022 that Tesla’s wages were approximately 20% lower than the salaries negotiated in collective bargaining agreements with other car manufacturers.