Tesla European Ambition : A 25,000-euro Electric Car to Conquer the German Market

Tesla European Ambition : A 25,000-euro Electric Car to Conquer the German Market

Tesla’s European Ambition is taking a significant step forward, as the electric vehicle manufacturer is planning to produce a car priced at 25,000 euros ($26,838) at its Berlin factory. This development is highly anticipated and aligns with Tesla’s goal of achieving widespread adoption of its electric vehicles.

While the source of this information chose to remain anonymous and did not specify the production start date, it marks a significant move for Tesla’s expansion in Europe.

Tesla, as customary, declined to provide any comments on the matter. However, Chief Executive Elon Musk recently visited the Gruenheide plant and expressed his gratitude to the hardworking staff, as seen in a video shared on the social media platform X.

During the same meeting, Elon Musk shared his plans to produce the 25,000-euro vehicle at the German plant, further emphasizing Tesla’s European Ambition.

The Berlin factory, currently responsible for manufacturing the Model Y, which is the best-selling electric vehicle in Europe, is now poised to play a crucial role in realizing Musk’s vision for a more affordable electric car.

Musk had previously postponed plans for a budget-friendly electric vehicle in 2022, citing technological challenges. However, it has been reported that Tesla is making significant progress in developing a groundbreaking manufacturing technique that would allow the production of the entire underbody of the electric vehicle in a single piece. This innovation promises to streamline production processes and reduce costs, bringing Tesla closer to its goal of entering the mass market.

Expanding into the mass market is a pivotal component of Tesla’s strategy to boost vehicle deliveries to 20 million by 2030, representing a tenfold increase from current production capacity. Nevertheless, challenging economic conditions and high interest rates have impacted electric vehicle demand, prompting Tesla and other manufacturers to implement price reductions in recent months to stimulate sales.

While Tesla intends to double the German plant’s production capacity to 1 million vehicles per year, the company has not provided an update on its production figures since March. Local authorities have requested further information from the carmaker regarding how its expansion plans align with nature conservation laws before making a decision on approval.

In addition to these developments, Tesla announced a 4% pay raise for all employees, effective from November onwards. Production workers will receive an additional 2,500 euros per year starting in February 2024, amounting to an 18% pay increase over 1-1/2 years. In 2022, German union IG Metall had pointed out that Tesla’s wages were approximately 20% below the collective bargaining agreements of other carmakers.

(1 euro = 1.0742 USD)

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Emily Johnson

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