Tesla Is Reportedly Planning To Build A Sub-$27,000 Car At Its Berlin Factory

Updated Nov 6, 2023, 07:12am EST. Tesla is planning to build a new electric car model that will be priced at around $25,000 from its factory near Berlin, Reuters reported Monday, making it the company's cheapest offering that could allow it to compete against budget EV makers from Europe and China. According to Reuters, Tesla is aiming for a $26,800 price point for the car, although it is unclear if it will be an entirely new model or a cut-down version of an existing one. The plan to build this lower-priced car was reportedly discussed last week when Tesla CEO Elon Musk visited the Berlin-Brandenburg Gigafactory located in Gruenheide, which makes the Model Y. The company believes it is close to achieving a manufacturing breakthrough that would allow it to cast the underbody of its cars as a single piece, resulting in lower costs, the report added. Tesla's current cheapest car in the EU is its Model 3, starting at $46,200. European car majors aside, Tesla also faces competition from Chinese makers like BYD. Earlier this year, the bloc approved a law that will ban the sales of carbon-emitting vehicles from the region starting 2035. Musk's plans to build a new model come amid Tesla's efforts to placate its German workers on wage issues. Tesla pays lower wages than other major carmakers in Germany, which has resulted in a pushback from IG Metall-the country's biggest labor union.