Tesla produces 25,000 euro model in Grünheide: declaration of war on competition and commitment to the location.

Tesla produces 25,000 euro model in Grünheide: declaration of war on competition and commitment to the location.

According to a report by www.tagesschau.de,

Tesla boss Elon Musk has announced that the company will produce an entry-level model for electric cars in the low price segment, which will be available for 25,000 euros, at the European factory in Grünheide near Berlin. This can be understood as a declaration of war on the competition and as a commitment to the Grünheide location. The planned model is expected to be launched as “Model 2” to provide mass market customers with more affordable options.

So far, the average price for electric cars on the market is around 60,000 euros, which is too expensive for many consumers, especially if government subsidies are reduced. However, with an inexpensive Model 2, Tesla could appeal to a large part of the mass market and further consolidate its position as one of the leading electric car manufacturers.

VW has also announced that it will have its subsidiary Seat produce an entry-level model for the same price, which shows that competition for the low-cost electric car segment is increasing. However, it remains to be seen how the competition will react to Tesla's announcement.

The planned increase in production capacity in Grünheide to up to one million cars per year and the increase in wages for employees also show the company's continuous growth and expansion plans.

Overall, Tesla's announcement is expected to have far-reaching implications for the electric car market and the financial industry, particularly when it comes to the availability and prices of low-end electric cars. The competition will now have to arm itself with innovative answers in order to survive in the competition.