According to insiders on Monday (November 6th), Tesla will produce a car worth 25000 euros at its factory near Berlin, a long-awaited development for the electric vehicle manufacturer. Before the US stock market, Tesla's stock price rose by about 3%.
The source did not specify when production would begin, and Tesla declined to comment on this news. Last Friday, Tesla CEO Musk visited a super factory located in the suburbs of Berlin after attending the artificial intelligence summit in the UK.
Musk thanked the employees for their hard work on that day and said that the Berlin factory had achieved great success. According to insiders, during his visit to the Berlin factory, Musk stated that he would produce 25000 euros of electric vehicles at the factory.
According to insiders, Musk has promised that Tesla will produce the next generation of new electric vehicles here after the German factory plans to expand next year. According to Musk's previous statement, the upcoming new model is tentatively designated as Model 2, which will be built on a brand new platform and its production speed will be further improved.
This German factory currently produces the best-selling electric vehicle Model Y in Europe. According to data, the registered sales of Model Y in the European market in September were 26370 units.
Consumer surveys show that the high prices of electric vehicles, combined with high interest rates, are several main factors hindering European and American consumers from purchasing such vehicles.
According to data from automotive research company JATO Dynamics, in the first half of 2023, the average retail price of electric vehicles in Europe exceeded 65000 euros, while the retail price of electric vehicles in China was slightly higher than 31000 euros.
Musk had long planned to manufacture a more affordable electric vehicle, but in 2022, he stated that Tesla had not yet mastered this technology and put this plan on hold.
In September, Tesla announced a technological breakthrough in integrated die-casting, which will be the key to Tesla's production of tens of millions of affordable electric vehicles and profitability plan in the next decade.
Through this breakthrough, Tesla can die-cast almost all complex underbody parts of electric vehicles into one unit, rather than just about 400 parts. This breakthrough will accelerate production speed and reduce costs.
Tesla's goal is to achieve an annual production of 20 million electric vehicles by 2030, which is 10 times the current production capacity. To achieve this goal, it is crucial to expand into the mass market and integrate die-casting technology.
Currently, Tesla plans to double the production capacity of its German factory to 1 million vehicles per year, but has not provided the latest data on how many cars it produces in Germany since March. At that time, the company stated that it produces 5000 cars per week, which is equivalent to producing about 250000 vehicles per year.
The local government in Germany stated in October that they had requested the automaker to submit further information on how its expansion plan would comply with nature conservation laws before deciding whether to approve it.
In addition, during last Friday's visit, Tesla executives informed workers that approximately 11000 employees at this German factory will receive a 4% salary increase, effective in November. Tesla will also issue a bonus of 1500 euros in December to offset inflation. Starting from February next year, the annual salary of Tesla production workers will increase by an additional 2500 euros.