Tesla set to build budget electric car, cuts prices

Tesla set to build budget electric car, cuts prices

Tesla will build a new small car range at its Berlin plant, its chief executive, Elon Musk, has said.

He told Berlin staff about the plan for a budget car when he visited the plant last week, according to a Reuters report.
The long speculated lower-priced Tesla model, dubbed ‘Model 2’ and priced at around €25,000, is seen as a key part of the plan to get to much higher volume globally.
Tesla has also cut its prices and sparked a price war as it seeks to step up volume ahead of a sales push by many automakers – including the Chinese – to gain BEV sales.

This is coming as the whole industry transitions to plug-ins and BEVs, away from cars powered solely by internal combustion engines.
But some analysts have warned that relatively high BEV purchase prices currently are constraining demand just as the world’s economy hits headwinds and the rebound from supply shortages loses momentum.
Other OEMs are also said to be planning lower-priced BEVs.
For instance, a small electric VW (priced at €25,000 or below) dubbed ID.2 is due in 2025. It has already been previewed by the ID.2all concept.
Stellantis brand Citroen is also planning a budget electric car (e-C3) for launch in 2025 which would have a small battery variant priced under €20k.
It would follow a variant with a larger battery launched in Q2 2024 priced at around €23k.
GlobalData forecasts that Tesla will start making a small C-Segment hatchback car in 2024, with production slated for its plants in Germany, China and Mexico.