Tesla to build €25,000 ultra affordable electric car

Tesla is planning to build a super affordable €25,000 ($26,838) electric car at its Giga Factory in Berlin reported Reuters citing sources related to this matter. Following this report, Tesla stock rose in premarket trading on Monday by up to 3%.

The high price tag of electric cars with high interest rates is one of the key factors, which is holding back the buyers. On average, the retail price of an EV in Europe in the first half of 2023 was over €65,000, and the Tesla Model 3 costs around €42,000.

It is mentioned Tesla Boss, Elon Musk had a long plan to launch an affordable electric car for a long time but Tesla, since then, had no technology to put such a product into production. But in September, the company achieved new breakthrough in car manufacturing that would put the plan into action and reduce the production as well as other costs.

The new affordable option could help Tesla to achieve its shipment goal, which is 20 million deliveries by 2030. This will also give the EV maker an edge over its competitors such as Volkswagen, and others.

Source – Tesla

During his visit to the Gruenheide plant on Friday, Musk thanked the staff for their work and shared a video of the meeting on X, formerly known as Twitter. At the same time, he also shared the plan to build an ultra-affordable 25,000 euro EV.

The mentioned German plan is used to produce the Tesla Model Y, which is Europe’s best-selling EV. To increase the production, Tesla planned to double its German plant output by 1 million vehicles a year. Still, the electric vehicle maker has not shared the statics of the car it produced since March.

Tesla is due to submit its plan for expansion but it confirmed that all staff would receive a 4% pay hike starting this November. Meanwhile, the production workers will receive an additional 2500 euros per year from February next year. This extra pay is an 18% increase in employee salaries within the past one and a half years.

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