This announcement comes at a time when the cost barrier is a significant hurdle for many potential EV buyers, reports Reuters.
With the average EV price in Europe sitting over 65,000 euros, Tesla’s initiative could not only revolutionize the market but also play a pivotal role in the mass adoption of sustainable vehicles.
Tesla’s German plant, which currently produces the Model Y, is on track to expand its production capacity to 1 million vehicles per year.
This scale-up is part of Tesla’s grand vision of increasing vehicle deliveries to 20 million by 2030.
A goal that sets it apart from competitors who are more cautious with their delivery targets, focusing instead on protecting profit margins during the transition to EVs.
The commitment to building a more affordable EV isn’t new for CEO Elon Musk, who in 2022 acknowledged that the technology to achieve this wasn’t yet mastered.
However, advancements seem to have been made with Tesla reportedly close to a breakthrough that could significantly lower production costs by die-casting nearly the entire underbody of the EV in one piece.
The move to produce a cost-effective EV in Germany is a bold step for Tesla and reflects a strategic shift to target a broader market segment.
Tesla’s focus on innovation, coupled with the recently announced pay rise for its German factory workers, underscores the company’s investment in both its products and people.
This development marks a significant milestone for Tesla and the EV industry at large, signaling a potential shift towards more accessible sustainable transportation options for consumers across Europe and beyond.
While the exact production date remains undisclosed, the buzz around Tesla’s latest move is a clear sign that the future of EVs could be more inclusive than ever before.