(CTN News) – The electric vehicle maker Tesla plans to build a 25,000-euro ($26,838) Tesla car at its factory near Berlin, a source with knowledge of the matter said on Monday, in a long-awaited development for the company, which aims to be one of the world’s biggest automakers.
At this point, the source, who declined to be named, said there was no indication of the exact date when production would begin.
The Tesla company declined to comment on the matter in any way. By the time this article was being written, shares of the company were up 3% in pre-market trading in the United States at 0910 GMT.
According to consumer surveys, there are several factors holding back the uptake of electric cars in Europe and the United States, including the steep price tags of electric cars, compounded by the high interest rates on loans, among other things.
According to JATO Dynamics, an auto research firm, the average retail price of an electric vehicle in Europe in the first half of 2023 will be over 65,000 euros, compared to just over 31,000 euros in China, according to research conducted by the firm.
It had long been Musk’s plan to make an electric Tesla car that would be more affordable for the average consumer, but he announced in 2022 that he hadn’t mastered the technology and that the project had been shelved due to failing to master it.
Despite that, sources told Reuters in September that the automaker is close to making a breakthrough that would allow it to die cast almost all of the underbody of the EV in one piece, a breakthrough that would speed up production and lower costs of producing the Tesla car.
In order for Tesla to reach its goal of delivering 20 million vehicles by 2030, it is imperative that it expands into the mass market in order for the company to achieve its goal.