Tesla to launch affordable electric Car (€25,000) in Europe using innovative manufacturing process.

Story by: fdaytalk.com

Tesla plans to enter the affordable electric car market by launching a €25,000 ($26,838) electric car model, which will be produced in its Berlin factory.

During a visit to German plant, Elon Musk, announced a plan to build a 25,000-euro vehicle which would use the “Unboxed Process”, uses more robotic manufacturing for faster & more precise results.

The German plant in Gruenheide, which currently produces the Model Y, is set to double its capacity to 1 million vehicles per year.

Tesla also informed its workers of a 4% pay raise from November onwards, with production workers receiving an additional €2,500 per year from February 2024.

Tesla had previously shelved plans for an affordable EV but is reportedly close to an innovation that would simplify production and reduce costs.

Tesla’s Gigacasting manufacturing process, aims to reduce production costs for the Model Y by die-casting large sections of the vehicle.

High electric car prices, along with high interest rates, are hindering EV adoption in Europe and the United States.

EV MARKET

The average retail price of EVs in Europe was over 65,000 euros in H1 2023, whereas it was around 31,000 euros in China.

Tesla aims to sell 20 million electric vehicles by 2030, making it a dominant force in the global vehicle market.

The success of this affordable model will be a crucial factor in Tesla’s ability to achieve its ambitious goals.