Tesla CEO Elon Musk is ready to change the world. While he has been adamant that electric vehicles (EVs) aren’t for everyone, he isn’t going to stop trying. Seeing the heart of the problem, the price, for what it is, he has set out to change that. According to an anonymous source to Reuters on November 6th, Musk is determined to sell his latest EV at $27,000 for the base price.
Doing so, he will be putting his new Berlin, Germany to full production. This Euro Gigafactory is incredibly impressive according to X messages by Musk. Proclaiming his love for the work they have done, he seemed especially proud of the water and beer-serving robotics. Aesthetically, he claims the concrete will end up being covered with art. What that art will consist of and who will do the art has not yet been announced.
Meeting with the Giga team directly, Musk outlined his plans for this cheaper model and how to mass market it. Previously announced back in 2022, Musk has yet to make this economy edition Tesla a reality for consumers in any market. As it stands in Europe the average EV ran $65,000 in early 2023. By comparison, the cheapest Tesla in the US is a base Model 3, with the rear-wheel drive edition starting at $38,900 and the all-wheel drive edition jumping to $45,900. When asked about the report, Tesla refused to comment.
As things sit now, the Berlin Gigafactory is producing the Model Y. Currently undergoing tremendous growth, the company has plans for the factory to churn out 1 million vehicles per year. According to reports released back in March, they currently are capable of producing 250k per year.
During Musk’s visit, Tesla did make some corporate announcements as well. Following a massive push from their own workers union they will receive a 4% increase in base wages in November. A 1,500-euro bonus in December will be awarded to all staff, and an annual wage increase of 2,500 euros is slated for February. These kinds of changes are reportedly unconnected to the worker’s union according to Tesla.
Making this new and high-achieving plant the future of the economy line is a brilliant move by Musk. With the easier regulations for automotive achievement in Europe, Musk can test and refine the process at an even easier and smoother pace than he could here in the US. Basing production overseas for this also prevents the Austin, TX Gigafactory from being overloaded as they attempt to get Cybertrucks rolling out the door. These massive works of engineering are slowly making their way out there.
One thing Musk also realizes is that neither the Cybertruck nor an economy edition Tesla will make EVs the gold standard any time soon. With reports of horrific battery fires and a lack of infrastructure in rural America, many simply are unable to make the change sensibly. Yet Musk has taken this news on the chin with a smile on his face. Rather than get mad at the challenges being laid out in front of him, he instead has options to be proactive in solving them.
For much of middle America, if they can get in an EV for less than their economy gas vehicle, and save on “filling up” by sitting at a charging station, many will be all for it. Especially if the rapid chargers can top their vehicle off promptly. This feature has yet to be fully implemented, but many believe it is well on its way. If they can roll it out with their economy line, it could be the tipping point for using EVs across the US.