Tesla will use Giga Berlin and the German know-how to develop and produce its first electric hatchback, its cheapest car in the portfolio.
Tesla is already cementing its place as one of the largest car manufacturers. Although not without some problems and hurdles, Elon Musk’s company usually delivers on the promises it makes. This was made quite clear when Tesla launched its long-time promised Model 3 at $35,000 for the base model.
We have already heard Musk talk about a compact Tesla that would come at a lower price point. We now know that the vehicle in question would be an electric hatchback to compete with the VW ID.3 in Europe.
This year, Tesla launched the Model Y in the US, heavily inspired by its previous Model 3. The SUV should surpass the sedan in sales simply because SUVs are more popular at the moment.
However, Tesla could take another route in the EU since compact hatchbacks are still very popular there, mostly since maneuverability in tighter alleys is a bit more required there.
Nonetheless, this doesn’t mean that Tesla could not succeed with a compact hatchback in America. The model’s affordable price tag could certainly be attractive to a lot of people.
Elon Musk has already indicated that the Tesla hatchback would most probably be designed and manufactured in Europe, specifically in Giga Berlin. The modern German factory would feature state-of-the-art technologies and should produce an excellent car.
“I think there’s a lot of talent, talented designers and engineers, in Europe. And a lot of the best people, they want to work somewhere where they are doing original design work. They don’t want to just be doing the European version of something that was designed in California. So, I think it’s important to attract the best talent to do original design,” said Elon.
Reports suggest that Tesla is already working on new battery technology that might reduce the units’ size, thanks to higher energy density. If Tesla is successful, it would reduce the size of their vehicles without compromising on performance.
Seeing Tesla’s past, they could produce a small hatchback to compete with the best cars. But this road is not gonna be easy, even for someone like Elon.
More details to come.