Sunday, December 10, 2023
News Tesla Advances Sub 30,000$ Electric Car Production in Germany

Tesla Advances Sub 30,000$ Electric Car Production in Germany

Tesla is set to manufacture an affordable electric vehicle priced at 25,000 euros in its German factory, marking a strategic move toward broader market penetration.


  • Tesla aims to produce a more accessible electric vehicle at its Berlin-based plant, indicating a shift toward mass-market appeal.

  • The initiative accompanies a pay rise for Tesla’s German factory staff, reflecting the company’s growth and investment in its workforce.

  • Despite the lack of a confirmed production start date, this development aligns with Tesla’s goal of significantly increasing vehicle deliveries by 2030.


According to information from Reuters, Tesla has unveiled plans to develop a new, more economically priced electric vehicle to be manufactured in its German facility. This initiative represents a pivotal step toward the mass adoption of Tesla’s EVs, with a targeted price point of 25,000 euros (roughly 30,000$). The specific timeline for the commencement of production remains undisclosed, and Tesla has not issued any comments regarding this development.

Tesla Model 3 Refresh | Photo: Tesla

The pricing of EVs remains a critical barrier to their widespread adoption in both Europe and the Americas. Market research indicates that the average retail price for an EV in Europe during the first half of 2023 was substantially higher than the price of Tesla’s proposed model. Tesla CEO Elon Musk has previously expressed the ambition to offer a more affordable EV but faced technological hurdles that delayed these plans. Innovations in production techniques, such as the potential to die-cast large components of an EV’s underbody, are expected to reduce costs and accelerate manufacturing processes.

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Tesla’s strategy diverges from that of other automakers like Volkswagen, which have been more cautious, focusing on maintaining profit margins during the shift to electric mobility rather than setting ambitious delivery targets. Tesla’s goal is to increase its vehicle deliveries to 20 million units by 2030, a target that necessitates entry into the mass market.

Tesla Model 3 Refresh | Photo: Tesla

During a recent visit to the Gruenheide plant, Musk praised the workforce’s efforts and announced the upcoming vehicle alongside a pay increase for the staff. The plant, which primarily produces the Model Y — Europe’s top-selling EV — is looking to double its capacity to 1 million vehicles annually. Regulatory compliance concerning environmental conservation remains a consideration for the plant’s expansion plans.

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