Tesla is planning an entry-level model in the Berlin factory for 25,000 euros - financial expert analyzes the effects

Tesla is planning an entry-level model in the Berlin factory for 25,000 euros - financial expert analyzes the effects

According to a report by www.finanzen.net, the US electric car manufacturer Tesla plans to produce a new entry-level model for 25,000 euros at its factory in Grünheide near Berlin. Tesla boss Elon Musk made this announcement during a visit to Grünheide. The planned vehicle should be a commitment to the location in Brandenburg and express the location's security. It is already in development, and it is not clear whether it will be manufactured exclusively in Europe.

The factory in Grünheide opened last year and currently employs around 11,000 people. Although the target of 500,000 cars produced per year has not yet been achieved, there are already plans to expand the factory to a capacity of one million cars per year. The state of Brandenburg is still examining the environmental law application for the first part of the expansion, as there are concerns from environmental associations and residents. Musk also announced plans to increase employee salaries, with increases of up to 6 percent last year and an additional 4 percent this year. IG Metall welcomed the planned wage increase, but pointed out that even after the increase, pay at Tesla still lags well behind the usual level in the auto industry in Germany.

On the NASDAQ, Tesla shares temporarily fell by 1.18 percent to $219.55.

These developments may have various impacts on the market. Tesla's planned entry-level model could intensify competition in the electric vehicle segment and lead to a reduction in the price of electric cars as other manufacturers may develop similarly priced models to compete with Tesla. Additionally, Tesla's planned wage increases could have an impact on labor costs across the auto industry in Germany, especially if other companies follow Tesla's lead and rethink their wage policies. This could lead to changes in the work structure and wage costs in the industry and have a long-term impact on companies' profits and competitiveness.

The announcement of the new entry-level model and the wage increases at Tesla have already caused a temporary decline in the share price on the NASDAQ and could continue to influence investor sentiment and confidence in the company. It remains to be seen how these developments will affect Tesla's long-term profitability, competitiveness and innovation.