Tesla to build cheapest car yet in Germany - report

Tesla CEO Elon Musk recently visited the company’s Gigafactory Berlin-Brandenburg plant in Germany and reportedly confirmed its forthcoming entry-level model will be produced there.

This announcement was reported by Gigafactory Berlin News on X (formerly known as Twitter), with Teslarati reporting Mr Musk announced this during a meeting with plant staff.

There have been rumours swirling for months now about where this new entry-level Tesla electric vehicle (EV) will be produced, including in Mexico and India.

It’s entirely possible production of the forthcoming Tesla entry-level model could still be happening in these places as production at the Gigafactory Berlin-Brandenburg plant is reportedly for the European market only.

Tesla’s German production plant currently produces the Model Y for the European market.

The new Tesla model could also be produced in more locations including China, like where the Australian-specification Model 3 and Model Y are currently manufactured.

In addition, Mr Musk confirmed during his visit to the Gigafactory Berlin-Brandenburg plant that the entire factory will be covered in art.

At this stage it’s unclear when Tesla plans to start producing this new entry-level model at its German plant.

A recent report from Chinese outlet LatePost said Tesla’s next-generation vehicles will enter production in Mexico in the first quarter of 2025.

Tesla has confirmed it’s working on a smaller, more affordable vehicle to slot under the Model 3, as well as a robotaxi.

The company said it already took 50 per cent of costs from its Model S and Model X to its Model 3 and Model Y, and wants to do it again.

It has said past Tesla vehicles were designed first, then engineered, then manufactured. But with the next-generation model, it wants to bring the design, engineering and manufacturing teams together at the beginning.

The company pointed out the inefficiencies of the traditional way of manufacturing a vehicle, saying it’s at “the tail end of its manufacturing optimisation” just over 100 years since Henry Ford opened his first assembly line.

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