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Tesla seeks to build more affordable electric car starting around $27,000: Report
Photo by ALAIN JOCARD/AFP via Getty Images

Tesla seeks to build more affordable electric car starting around $27,000: Report

Tesla is seeking to build a more affordable electric car model, a source told Reuters on Monday.

The source with knowledge of the matter, who declined to be named, told the news outlet that Elon Musk's EV company plans to create a car starting at 25,000 euros, or roughly $26,800, at its factory near Berlin, Germany.

Musk visited Tesla's Gigafactory on Friday to "congratulate the team on their excellent progress," he wrote on X.

"The factory looks amazing!" Musk stated. "We are going to cover all the concrete with art."

"It’s even better in person and has a robot that pours beer and makes coffee," he stated.

Tesla shared a video on X showing off some of the factory's renovations.

While meeting with the team, Musk allegedly unveiled plans to create a new model for the mass market. The Tesla CEO previously announced goals to build a more affordable EV but stated in 2022 that the company had not yet mastered the technology, Reuters reported.

According to JATO Dynamics, the average retail price for an EV in Europe was over 65,000 euros in the first half of 2023.

The most affordable vehicle Tesla currently offers is its Model 3. The company's rear-wheel drive version starts at approximately $38,990, while its dual-motor, all-wheel drive model starts at roughly $45,990, according to its website.

Tesla declined to comment, Reuters reported.

Tesla's Germany plant currently produces the Model Y. The company has plans to expand the factory to produce 1 million vehicles per year. Previous reports from March revealed that the plant produces around 250,000 vehicles yearly.

Tesla announced that the 11,000 employees at the Germany factory will also receive a 4% pay raise in November, following a push for increased wages from the workers' union. Staff will also receive a 1,500 euro bonus in December. Production workers will see an annual wage increase of 2,500 euros in February.

Tesla stated, "Claims that there is a connection between Tesla's salary adjustments and union activities are untrue."

According to the Wall Street Journal, Musk told the workers that Tesla's new next-generation vehicle would be produced at the German plant.

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