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Elon Musk reportedly hopes to make a cheaper EV
The Tesla Model Y is Europe's best selling electric vehicle
Tesla is planning to release an electric car with a price point of around £21,645 (€25,000), which would make it one of the cheapest on the market.
Founder and CEO Elon Musk said he had long planned to make an affordable electric car but was waiting for technology to improve and production costs to fall.
Speaking to Reuters, a source said the carmaker would be able to die cast nearly all of the underbody of the EV in one piece, slashing prices in the process.
The brand aims to meet targets of delivering 20 million vehicles by 2030, despite competitors avoiding setting targets, including Volkswagen.
Elon Musk reportedly told employees that the new affordable EV would be built in the European Union at the manufacturer’s new German Gigafactory.
Giga Berlin currently produces Europe’s best-selling EV, the Tesla Model Y, with the site reaching a run rate of 5,000 units a week in March 2023.
Elon Musk described the Giga Berlin factory as the “jewel of Germany”, saying the team there was making “excellent progress” and that the factory looked amazing.
Other major companies are planning to release cheaper electric cars to gain an advantage in the growing EV market.
Vauxhall could look to launch a new small electric car believed to have a target price of just £22,000.
While it has not yet been confirmed that the company is planning such a move, there are hopes from many in the industry that the British brand will make the jump.
Many have called on car brands to commit to a cheaper electric car to help drivers make the switch to an EV.
The cheapest electric Vauxhall on the market is currently the Corsa which will set drivers back around £32,445.
There have been issues with brands making cheaper electric cars, given the expensive cost associated with batteries.
Experts have suggested that electric vehicles could reach price parity with petrol and diesel vehicles, with prices beginning to ease after global issues stemming from the pandemic.
Tesla is expected to make a major announcement later this month, with many hoping it will be the long-awaited rollout of its Cybertruck.
Posting on its social media channels, a “delivery event” is expected for November 30, with the rigid pickup truck already being seen on roads around California.
While many are intrigued to see the release of the Cybertruck, drivers in the UK and European Union will need to wait until orders open.
Toyota recently announced a breakthrough with energy-dense, solid-state batteries and how they could be available as soon as 2027.
Tesla has become one of the biggest car companies in the world
According to the Japanese brand, these batteries could allow an electric car to have a range of 750 miles and charge at a faster pace.