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Tesla Compact Car - Coming To Giga Berlin For Under $27,000

Elon Musk announced today that Giga Berlin would build a Tesla compact car and that it would be under $27,000!


Tesla Compact Car in Giga Berlin

Elon Musk announced recently a 25,000 Euro, which is just under $27,000 compact car being built at Giga Berlin, and this is a huge deal.

The reason this is a huge deal is that we now have THREE Gigafactories that will be building the compact car, and I think this number is going to increase. The three Gigafactories are:

* Giga Mexico
* Giga Texas
* Giga Berlin

It's quite possible that Tesla will also announce an add-on or new factory in China that will build a compact car - or Tesla will build the compact car in India for the Asian region. Whatever Tesla decides there, I expect to hear an announcement from Elon Musk relatively soon.

The reason there needs to be an announcement soon is for several reasons. The first is that BYD is building smaller and cost-effective hybrids and EVs already. Tesla needs to get in this market, as the demand for compact cars in the world far exceeds the current demand for Tesla's vehicles.

The Model 3 and Model Y may be great cars, but they are not affordable for the masses. Even at $39,000, the Model 3 RWD is still out of reach for many people around the world and in the United States. A $25,000 to $27,000 compact car will be in very high demand for Tesla, especially if they keep increasing their lead in autonomous driving.

You May Also Be Interested In: Tesla Model X Demand Is Increasing.

When Will the Compact Car Be Built?

If I were Elon Musk, and I'm not saying I'm anywhere near his knowledge or intelligence, but if I were him, I would have it as a top priority to get the manufacturing process for this compact car finalized and started at Giga Texas as soon as possible. I would want to see compact cars being tested in 2024 - as early as possible.

The reason this is important is that the manufacturing process will be replicated in Giga Mexico and Giga Berlin. Tesla needs to work out the bugs and issues with their new manufacturing process of the compact car so that it can be finalized and replicated across all factories.

This means there needs to be dedicated teams at Tesla right now that are working to produce this car in mass and are working on the new manufacturing techniques that Tesla showed at Investor Day, 2023. If I were Elon Musk, I would put a large incentive on having a finalized manufacturing process ready for the car and ready to present in front of him.

I expect to see drone flights capturing footage of Tesla compact cars in testing next year - hopefully in the first half of the year, but probably the later half, and I think Tesla should act with extreme urgency in building this vehicle. It is going to be their most important vehicle by far. And after this vehicle, the next most important vehicle will be the sub-compact Tesla, which should sell for around $17,000. That's a cost of less than $12,000 in the U.S. (due to the tax credit) for this vehicle - an absolute no-brainer.

This is the way Tesla gets to 20 million vehicles per year, and this is the ONLY way I see them getting to that many vehicles. They must mass produce their compact car and sub-compact car, and do it with the most extreme urgency they can muster.

In Other Tesla News: Tesla Cybertruck Shows Crab Walk Mode.

What do you think?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Tesla, Screenshot