A biography of Elon Musk written by Walter Isaacson, which traces the evolution of Tesla’s strategy, revealed that the company initially thought: Build a brand new compact electric car at the Mexico City GigafactoryStill in the project phase, Elon Musk revised his position.
While everything makes us believe that Giga Texas is now the place to host the production. According to Elon Musk, Giga Berlin should ultimately be responsible.
Tesla chose Germany to produce its small electric car
Tesla’s decision to produce the Model 2 in Berlin represents more than a geographical choice; This is a strategic decision to optimize production processes and meet the unique requirements of the European market. Although there is little chance of the Cybertruck’s sales booming in Europe, especially due to its massive size. A small city car would be much better suited to our roads than the company’s current sedans or SUVs.
Recently Elon Musk described this small Tesla, priced at less than 25,000 euros, as a “utility service”, and this already gives some clues about what we can expect: A functional, efficient and affordable electric vehicle.
During the third quarter earnings conference call, Elon Musk outlined his vision for producing this small electric car, emphasizing a traditional approach that prioritizes mass production. For this reason, Tesla should definitely reduce the prices of this new vehicle. This could create panic among competitors.
Various possible names have already been mentioned for this new reference, including “Model 2”, but It is unlikely that Tesla will choose this name for the final version. For now, we know the car will have to be a small Model Y with a Cybertruck feel, and that model will ultimately need to be produced in around 4 million units per year.
