Tesla plans to produce new entry-level model for German factory - Insider

Tesla plans to produce new entry-level model for German factory - Insider

According to a report from www.finanzen.net, Tesla plans to build a new entry-level model at its German factory in Grünheide. The car is expected to cost 25,000 euros and would therefore be significantly cheaper than the previous models. Tesla boss Elon Musk reportedly personally informed about these plans during his visit to the factory. The Grünheide factory is currently producing the Model Y and an application has already been made to double capacity.

Tesla had already shelved its plans for a low-cost model last year for technical reasons. However, the company is reportedly close to developing a breakthrough technology that involves molding the vehicle's entire underbody in one piece. This would reduce costs and speed up production. A low-cost model would be a big step for Tesla to surpass traditional volume manufacturers such as Volkswagen, Toyota or General Motors and reach annual sales of 20 million cars by 2030.

During his visit, Elon Musk also took the opportunity to thank employees for their commitment. Tesla announced a pay increase for employees that will take effect in November. The IG Metall union had previously complained that wages at Tesla were around 20 percent below the industry collective agreement.

The announcement of the new entry-level model could have a significant impact on the market and the financial industry. A low-cost model from Tesla could further intensify competition in the electric car industry and put traditional car manufacturers under pressure. It could also impact key suppliers as demand for electric car components would increase.

Tesla shares are currently down slightly by 0.85 percent to $218.10 on the NASDAQ.

Source: According to a report from www.finanzen.net.