Tesla plans to build a new electric car model for about $25,000 at its factory near Berlin, making it the company's cheapest bid to compete with low-cost electric cars in Europe and China.
Tesla is targeting a price point of $26,800 (€25,000) for the car, although it is not clear whether it will be an all-new model or a stripped-down version of the existing one according to reporters.
The plan to build this cheaper car was reportedly discussed last week when Tesla CEO Elon Musk visited the Gruenheide Gigafactory in Berlin-Brandenburg, which produces the Model Y.
The report added that the company believes it is close to a production breakthrough that would allow it to cast the bottoms of its cars in one piece, reducing costs.
The cheapest Tesla car in the EU is currently the Model 3, whose price starts at $46,200 (€42,990). Musk has long hinted at plans to build cheaper electric vehicles, but his company has not revealed any specific plans. But the latest news comes from a slew of cheap new electric cars hitting the EU market.
Earlier this year, Volkswagen unveiled concept designs for a $27,000 (€25,000) electric car called the ID.2, which the company said would be launched in 2025. The Dacia Spring EV produced in China by French automaker Renault is considered the cheapest in the EU.
Electric car and its prices start at 21,500 dollars (20,800 euros). Last month, Stellantis announced the launch of its $25,000 (€23,300) Citroen e-C3 and promised a sub-$20,000 (€21,500) model in 2025.