Berlin, Nov 7: Tesla (TSLA.O) plans to build a 25,000-euro ($26,838) car at its factory near Berlin, a source with knowledge of the matter said on Monday, in a long-awaited development for the electric vehicle maker which is aiming for mass uptake of its cars.The source, who declined to be named, did not say when production would begin.
Tesla declined to comment.
Chief Executive Elon Musk visited the plant in Gruenheide on Friday and thanked staff for their hard work, a video showed on social media platform X.
At the same meeting, he informed staff of plans to build the 25,000-euro vehicle there, the source said.
The German plant currently produces the Model Y, Europe’s best-selling EV.
Musk had long planned to make a more affordable electric car, but said in 2022 he had not yet mastered the technology and shelved the plan.
Still, sources told Reuters in September the carmaker was closing in on an innovation that would allow it to die cast nearly all of the underbody of the EV in one piece, a breakthrough that would speed up production and lower costs.
Expanding into the mass market is critical to meeting Tesla’s goal of increasing vehicle deliveries to 20 million by 2030, a 10-fold increase from current capacity.
But a weak economy and high interest rates have hit demand for electric vehicles, prompting Tesla and others to cut prices in recent months in an attempt to boost sales.
The carmaker plans to double the German plant’s capacity to 1 million vehicles a year, but has not provided an update on how many cars it produces there since March, when it said it had produced 5,000 vehicles in a week – equivalent to around 250,000 annually.