Tesla Giga Berlin to Produce Affordable Compact Hatchback Designed by Local Talent to Meet European Needs

Tesla Giga Berlin to Produce Affordable Compact Hatchback Designed by Local Talent to Meet European Needs

Image credit: BudeepCar.com

Electric vehicles are a critical element of the world's transition to sustainable energy and to the solution for improving the climate situation. However, their high cost is the main obstacle itself. Tesla's team works tirelessly to reduce the price of their cars. One major focus is on achieving a reduction in the cost of producing batteries so that the final cost of its cars is lower.

At Battery Day, it was announced that the company was able to achieve a stunning 56% $/kWh reduction. Tesla also announced that, due to lower battery manufacturing costs in the future, within three years, the company will present a new model that will cost just $25,000.

Tesla's CEO Elon Musk later explained that the affordable electric car would be developed by both Chinese Tesla designers and European ones. That is, R&D centers in these countries will develop their own, affordable models. All current models have been developed by Tesla in Fremont, so creating new models outside of the US is an exciting prospect.

There are talented designers and engineers in Europe. Musk indicated that the best people want to work there and implement their own ideas--not just copying what was developed in California, but to create something altogether new. He also understands that a bespoke model is needed that will be adapted to the particular conditions and needs of Europe.

Tesla plans to entrust the German R&D centers with the development of a compact class car, which is especially popular in the European market. The fact is that many European cities are compact, and the streets are often quite narrow. For those who live in such places, a compact car is their best option.

Musk shared his experience that, when he was visiting Berlin, it was difficult to find a parking space that could fit the Model X. This experience underlines the importance of creating a compact model for the European market.

© 2020, Eva Fox. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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