Revolutionary: Elon Musk’s Tesla to produce cheapest EV in Germany, sources

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 has plagued Europe and the United States. This has created obstacles in its adoption.

Although the source did not specify when production would begin, the development reflects Tesla’s goal of driving mass EV adoption.

The average retail price of an EV in Europe has been significantly higher, reaching more than 65,000 euros in the first half of 2023, while in China it is around 31,000 euros.

Tesla CEO Elon Musk previously aimed to build more affordable electric cars, but he delayed the plan, citing technology challenges. However, in September, it was reported that the company was close to an innovation that could streamline production and reduce costs.

Penetrating the mass market is crucial for Tesla to reach its goal of delivering 20 million vehicles by 2030, which sets it apart from competitors like Volkswagen that focus on profit margins and don’t set specific delivery targets. We do.

Musk recently visited the Grueneheide plant in Germany, where he reportedly announced plans to produce the 25,000 euro vehicle. The German factory currently produces 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 workers’ demands, Tesla also announced a 4% pay increase for all employees starting in November, with production workers to receive an additional 2,500 euros per year from February 2024, which amounts to an 18% pay increase within 1-1/2 years. Is equal to. ,

German union IG Metall previously highlighted that Tesla wages were about 20% lower than other carmakers’ collective bargaining agreements.

This move by Tesla is an important step towards removing price barriers and increasing its market share in the electric vehicle sector, leading to greater adoption of EVs in Europe and the United States.

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