During his recent visit to Tesla’s Giga Berlin plant, Elon Musk (pictured above) shared plans for manufacturing Tesla’s affordable $25k electric vehicle (EV). The $25K Tesla will be known as the Model 2.
Musk frequently visits Tesla production plants to oversee progress, meet with team members, and ensure smooth operations.
According to Teslarati, Musk announced that Tesla would produce a $25k EV at the Berlin plant. The car will target customers who are unwilling to spend more than $30k on a new EV. This move aims to expand Tesla’s market reach and make EVs more accessible.
While Tesla has been able to reduce prices on its vehicles, the Model 3 hasn’t reached the $25k threshold yet. However, plans to create a vehicle at that price point have been in the works for some time. Musk has been talking about a $25K Tesla EV since 2018.
Analysts at Loup Ventures previously predicted that the Model 2 would be announced in 2024, with production beginning in mid-2025. Since Musk’s Berlin announcement happened in 2023, the Model 2 might come earlier than anticipated.
Giga Berlin will produce Model 2 vehicles primarily for the European market. However, Tesla is reportedly considering manufacturing the Model 2 at factories in China and Mexico as well.
The Model 2 will be a game-changer in the push to electrify transportation. The current cost of a new car in the US is just under $49,000. As a result, the Model 2 will forever end the idea that EVs are a luxury reserved for the wealthy.
When combined with the fact that EVs have much lower maintenance costs than gasoline cars, the Model 2 could very well be the vehicle that makes gasoline cars a thing of the past.
Musk has previously promised that the Model 2 will be among the simplest cars Tesla has ever manufactured. Its conventional design will allow Tesla to manufacture the car at a speed that’s “unheard of” in the auto industry.
However, some industry watchers feel that Tesla’s focus on mass-producing the Cybertruck will delay new projects like the Model 2. We’ll have to stay tuned to find out the Model 2’s official launch date.
Image Source: Gigafactory Berlin News, https://shorturl.at/bEV19