Tesla (NASDAQ:TSLA) CEO, Elon Musk visited the company's gigafactory in Berlin Friday where the multi-billionaire gave an update on the plant's aesthetic design and outlined the manufacturing strategy for a forthcoming affordable $25,000 electric vehicle aimed at the mass market.
Musk is known for his frequent visits to Tesla's production plants, where he oversees the progress of operations and engages with the manufacturing team members.
Sources indicate that during his visit, Musk confirmed Tesla's plans to produce the $25,000 EV at the Berlin plant, as reported by @Gf4Tesla on X (formally Twitter).
Targeting a market segment that has been outside the reach of the company's previous offerings, the $25,000 vehicle has long been on Tesla's manufacturing agenda. This move aims to cater to customers who have been hesitant to invest more than $30,000 in a new electric vehicle, thereby expanding Tesla's consumer base.
There have been constant rumors surrounding the production location of Tesla’s $25,000 EV, with some speculating the vehicle could be assembled in China or Mexico. However, during his recent meeting with employees, Musk disclosed that the vehicle will also be produced in Berlin, specifically catering to the European market.
Although Tesla has successfully managed to reduce prices on its vehicles several times, the company has yet to achieve the target price of $25,000 for the Model 3.
Nonetheless, it has long been discussed that Tesla would introduce a vehicle aimed at hitting this specific price point.
Shares of TSLA are up 0.69% in afternoon trading on Friday.