Tesla has been working on a Tesla for less than $25,000 for several years now, and Elon Musk has now announced that production of the electric car will be based in Europe.
The biography of Elon Musk written by Walter Isaacson, which traces the evolution of Tesla’s strategy, revealed that the company was initially thinking of build a brand new compact electric car at the Mexico City Gigafactorywhich is still in project, but Elon Musk had revised his position.
While everything led us to believe that it was now Giga Texas which would host the production, Ultimately, Giga Berlin should be in charge, according to Elon Musk himself.
Tesla chooses Germany to produce its small electric car
Tesla’s decision to produce the Model 2 in Berlin represents more than a geographic choice; this is a strategic decision to optimize manufacturing processes and meet the unique requirements of the European market. While there is little chance of Cybertruck seeing its sales explode in Europe, particularly because of its immense size, a small city car would be much more suited to our roads than the company’s current sedans or SUVs.
Recently, Elon Musk described this small Tesla for less than 25,000 euros as a “utility”, which already gives some indications of what to expect: a functional, efficient and affordable electric vehicle.
During the third quarter earnings conference call, Elon Musk outlined the vision for producing this small electric car, emphasizing a conventional approach that prioritizes mass manufacturing. Tesla should therefore make sure to cut prices with this new vehicle, which could well create panic among its competitors.
Several possible names have already been mentioned for this new reference, including “Model 2”, but it is very unlikely that Tesla will opt for this name for the final version. We know for the moment that the car should be a small Model Y with a Cybertruck feel, which will ultimately have to be produced at around 4 million units per year.