Leading American automaker Tesla is reportedly on track to produce the highly anticipated $25,000 electric car. Chinese supply chain sources claim that the first production phase targets 4 million units, with plans to hit 20 million annually.
Tesla boss Elon Musk has been hinting about a $25,000 electric car for a few years now. At the same time, he declared last year that the cheaper Tesla EV is not one of the company’s utmost priorities, disappointing potential customers.
Tesla may finally pursue a $25,000 EV
China-based news platform 36Kr reports some intriguing information regarding the luxury brand’s new cheaper EV, citing supply chain sources (translated from Chinese):
“Sources revealed to 36 Krypton that Tesla’s upcoming low-priced model is the small Model Y, and Tesla is building an annual production capacity plan of up to 4 million vehicles for it. listed. Regarding the news, Lei Technology consulted Tesla insiders, but the insiders did not answer directly. Under our repeated questioning, they just gave a “no comment.”
Supply chain sources via 36Kr
As the report mentioned, Tesla’s cheap EV may be a small version of the Model Y.
Apart from that, Tesla apparently intends to split up its 4 million vehicle production capacity among its factories globally. Over 1 million vehicles will reportedly be allocated by Tesla to the planned Gigafactory Mexico.
Interestingly, it has also been speculated that a prototype of this new, less expensive, high-volume Tesla vehicle may have recently been spotted in China.
See Also:
- Tesla’s smaller and cheaper electric vehicle is making progressTesla’s smaller and cheaper electric vehicle is making progress
- Tesla’s upcoming platform will be smaller and cheaper than the price of Model 3/Y
- Tesla may offer cheaper electric vehicles before Robotaxi launch
- Tesla pre-owned car prices slashed by $18,000 after price cuts up to 20% in key markets
- Tesla’s affordable EV highlighted during Musk’s G20 interview
The distribution and production rates are reasonable. Tesla can produce around 2 million vehicles annually. With its present lineup of vehicles, it would be challenging to increase that number to more than 3 million. Although Cybertruck may be able to increase that number to 5 million units, Tesla will still need to make more affordable, high-volume cars to make a difference.
However, we should still be skeptical of such reports.
