A person who knows the situation stated on Monday that Tesla (TSLA.O), an electric vehicle manufacturer striving for broad market adoption, will produce a 25,000-euro ($26,837.50) car near Berlin. This is a long-awaited step for the company.
The insider, who wished to remain anonymous, did not say when manufacturing would start. Tesla opted not to respond. After attending an AI symposium in England on Friday, Tesla CEO Elon Musk visited the facility in Gruenheide, close to Berlin.
A video uploaded on X, the old name of Twitter, showed the CEO thanking the plant’s employees for their dedication.
According to the source, he also told employees about the intention to construct the 25,000-euro car at that same meeting.
Musk has long hinted at the possibility of a more reasonably priced electric vehicle, but he canceled the idea in 2022 after declaring he had not yet mastered the technology.
Nevertheless, sources told Reuters in September that the automaker was getting close to a breakthrough enabling it to die-cast almost the whole underbody of the electric vehicle (EV) in a single piece. This move would help reduce costs and speed up production.
Reaching Tesla’s target of 20 million vehicles delivered by 2030 would require entering the mainstream market.
However, a weak economy and high borrowing costs have hurt demand for electric cars, so Tesla and other manufacturers have recently reduced their prices to boost sales.
