Upcoming $42k Tesla BEV to be made in Germany: report

Jet Sanchez
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A concept image of what Tesla's latest model could look like, rendered by DALL-E 3.

A concept image of what Tesla's latest model could look like, rendered by DALL-E 3.

Tesla has set its sights on producing its forthcoming $42,000 (US $25k) electric vehicle (EV) at its state-of-the-art German plant, according to inside sources. Although Tesla has yet to make an official announcement, industry insiders suggest that the entry-level EV could potentially see production at various facilities globally, with India and Mexico as probable contenders.

Tesla Model 2 2024

Situated in Gruenheide, near Berlin, Tesla's German facility currently churns out the highly successful Model Y, which has rapidly become the best-selling EV in Europe. The intriguing news of local production for the new EV came from none other than Elon Musk himself.

The Tesla CEO purportedly disclosed this development to factory employees during his recent visit to the "Giga Berlin" premises last Friday. An unnamed source, reputedly well-versed in the matter, corroborated Musk's statement to Reuters, though a commencement date for production remains undisclosed.

Tesla Model 2 render

While rumours surrounding the much-anticipated affordable EV have circulated the internet for years, Tesla has yet to pin down a debut date. Recent reports suggest that the company is advancing toward innovative technology that could significantly reduce production costs. This entails the use of die-casting to create the majority of the EV's underbody as a single piece. 

According to supplier information, Tesla aspires to manufacture 4 million units of the upcoming EV by 2030, an ambitious move aimed at bolstering total deliveries to 20 million vehicles by the same year.