Tesla plans $25,000 entry-level model

Tesla also seems to be relying on China for its planned entry-level model. According to the portal Teslarati, citing an interview with Tom Zhu, Tesla's China chief, with the state press channel Xinhua Net, the $25,000 electric entry-level model is intended for the global market. However, the vehicle will be designed, developed, and produced in the People's Republic. $25,000 is currently equivalent to just under 20,600 euros, but U.S. manufacturers always quote net prices before taxes, so in Germany, it could easily become 25,000 euros.

To get costs under control, Tesla is advancing its new battery and production technology. In addition to the Gigafactory in China, a design and development center is also to be established there.

In September 2020, during the presentation of the new batteries, Elon Musk stated that the company could deliver a $25,000 electric car with self-driving technology "in three years" - by 2023. According to Teslarati, the first prototypes for testing purposes could hit the roads as early as 2021. These are said to be hatchback models based on the Model 3, from which the base version could also be derived to utilize economies of scale. A sketch of the compact Tesla briefly made the rounds in 2020. We can be curious to see if the project will be ready for production by the end of 2022. Behind the scenes, it seems to be picking up speed. Moreover, it would ensure that Tesla can continue to increase its production numbers annually as before.

What does that mean?

If Tesla really wants to increase production by fifty percent annually, a high-volume entry-level model will be indispensable by 2022 or 2023 at the latest. This suggests that the product range will soon be expanded downward.