Tesla Under 25,000 Euros, Elon Musk’s Priority

The birth (in pain) of the Cybertruck in retrospect, it’s time for Tesla to enter the small-price car war.

In an interview with Sandy Munro published on YouTube on December 5, 2023, Elon Musk stated that the next Tesla to be unveiled, now that the Cybertruck has been officially launched, will be the highly anticipated sub-$25,000 car promised since 2020. Musk told Munro that his company was “quite advanced” in its work on this affordable Tesla and that he was monitoring the production plans daily.

A month ago, Musk seemed to prioritize the German Gigafactory in Grünheide, near Berlin, for the production of this model. Knowing how closely it aligns with European customs, and especially demand, it would be a good idea. Particularly in light of new European constraints such as the French EcoBonus, limited to “local” productions. But alas, the most likely site for a cheaper Tesla might not be China, where price competition is the fiercest. There’s also the ongoing issue of this new factory in Mexico, whose opening keeps getting delayed.

According to Elon Musk, the new vehicle is expected to be built at the Gigafactory in Austin, Texas, where the Cybertruck is already being produced at a painfully slow pace, with a secondary assembly line in another factory. So, all options we discussed remain open. Clever Elon—perhaps one way to lobby for public funding to favor one site over another. That’s how low-cost production becomes possible.

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