Tesla plans to build millions of low-cost electric cars each year

Tesla plans to build millions of low-cost electric cars each year. This is reported by the generally well-informed Carscoops, according to a supplier who has close ties to the American electric giant.

Tesla had previously announced that it was working on a cheap electric car. The car must be built on a platform smaller than the current one. A price of just over 20 grand would be realistic, says CEO Elon Musk. The production costs would also be roughly halved compared to the Model 3.

Millions of cheap electric cars

The model will reportedly be called the Tesla Model 2 and will compete in price with the Volkswagen ID.2 and Renault 5. Tesla plans to ship at least 4 million units annually. Elon Musk also previously said that “this model will exceed the production numbers of all other models combined”.

Last year, Tesla delivered a total of 1.3 million cars. By 2030, the manufacturer wants to produce 20 million cars a year. A very ambitious goal. It remains to be seen whether Elon Musk will succeed with his company.

The production of the Tesla Model 2 is not expected to take place in a gigafactory. After all, such gigantic production figures are difficult to achieve with a factory. China and Mexico are named as countries where the production of the cheap electric Tesla is to take place.

Tesla isn’t the only manufacturer focusing on cheap electric vehicles

It remains to be seen whether the demand for the Model 2 will be so great in the end. After all, the competition does not stand still and also comes up with cheap electric cars in this class. Although Tesla may be a dream car among some fans, the Renault 5, for example, can throw a spanner in the works. Finally, the upcoming EV appeals to many car enthusiasts with its retro design. In addition, there is Volkswagen with the ID.2. You can see why this car also has a chance of becoming popular in the video below.