Tesla seems to be betting big on the Cybertruck and a $25,000 cheap electric car to work towards its goal of making 20 million cars per year
Even as the world awaits the launch of the Cybertruck, Tesla Inc seems to be working on making the much-awaited $25,000 electric car a production reality. In a new development, supply chain sources based out of China have revealed that the carmaker intends to produce 4 million units of its ‘affordable’ EV every year.
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1 Million Units of $25,000 Tesla Electric Car to be Produced at Mexico Gigafactory
This could serve as one of the pillars of the company’s plan to start producing 20 million units a year by 2030. To achieve this, the Austin-based carmaker needs to increase its model range quickly. Not just that, it even needs to have a more mass-market approach if it wishes to drive volumes. While the details have been scarce so far, it’s been a while since the carmaker started dropping hints of a $25,000 electric car.
As reported by 36Krypton from China, the upcoming affordable EV would be a smaller version of the Model Y. The company is reportedly working on installing an annual production capacity of 4 million units for its low-priced offering. The same report even states that the carmaker intends to distribute the production of the new vehicle between various global facilities. Moreover, at least 1 million vehicles will be manufactured at the Gigafactory in Mexico.
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Won’t Be Called Model 2
Any official word on the above is awaited at the moment. That said, the annual capacity and production distribution data seem pretty realistic. Also, with over a million pre-orders for the Cybertruck, it would be pretty easy for the EV-maker to ramp up the volumes. However, only a more affordable offering, which, in this case, would be the $ 25,000 entry-level car, would help Tesla achieve the 20 million target. The introduction of the new model will even help the carmaker escape the clutches of economic slowdown and increased heat from the new rivals. While there were speculations that the $25,000 would be called Model 2, CEO Elon Musk has already quashed these rumors. Musk said at the 2021 Annual Shareholder Meeting, “Model 2 is not a car. There’s no Model 2.”