Tesla Chief Elon Musk reportedly dropped by the Gigafactory Berlin on Friday to announce new details regarding the planned $25,000 electric vehicle models’ production strategy, Energy Portal reports.
Moreover, the Tesla boss also apparently elaborated more details about the factory’s aesthetic design.
Plan highlights
CEO Musk officially announced that Tesla will launch the production of the new $25,000 e-car at Giga Berlin, according to @Gf4Tesla’s post.
The announcement signifies the company’s determination to expand its customer base, including the mass market segment.
Tesla initially disclosed that the cheapest Tesla EV will undergo production in China and Mexico. Now, Chief Musk has confirmed that it will also be produced in Giga Berlin in Germany.
The selection of the Giga Berlin strongly implies that the highly awaited $25,000 Tesla EV will specifically cater to the European market, where Chinese brands currently dominate with their cheap electric cars.
Significant milestone
Tesla’s plans to develop and launch low-priced models within the $25,000 price point is part of the company’s efforts to defend its dominant position against cheap Chinese-made models.
Tesla indeed has launched various price cuts on its current model offerings to make them more accessible to buyers. However, its luxury electric cars remain above the $25,000 pricing target.
Therefore, this progress is a huge milestone in Tesla’s long-standing plans to expand its product portfolio with a truly affordable model.
“This has always been our dream from the beginning of the company. It was always our goal to try and make an affordable electric car.”
Tesla CEO Elon Musk stated in 2020 (via Inverse)
Sales target
The Guardian noted that offering a low-cost model is crucial for Tesla to reach its target of selling 20 million electric vehicles by 2030.
As of now, it would be very challenging as Tesla only currently has four different electric car offerings under the S3XY lineup. However, these are competing in the higher end of the EV market.
Notably, the EV giant aims to commence the initial Cybertruck deliveries on November 30. It is also expected to boost its sales this decade. EV-a2z previously reported that pre-orders for this all-electric pickup have already surpassed the 2 million unit threshold.
TSLA investors were delighted with the announcement, boosting its shares by 0.69% in afternoon trading on Friday. The imminent arrival of the first-ever $25,000 Tesla car will undoubtedly aid Tesla in achieving the abovementioned sales target and staying relevant in the highly competitive industry.
