Tesla is reported to be looking to expand its global export hub, the GigaShanghai plant, to build the long-awaited $US25,000 Tesla EV, in the first major expansion of its electric range in many years.
Tesla dominates the Australian EV charts – and remains the world’s leading EV maker – primarily with just two top selling models, the Model Y electric SUV and the Model 3 electric sedan, although it has also made the first deliveries of the Tesla Cybertruck.
In recent years, there has been talk of a more affordable model, sometimes dubbed the “Model 2”, but more recently described merely as the $US25,000 Tesla. The pressure on Tesla to produce a lower cost car is increasing as more Chinese competitors roll out cheaper models.
The latest report from local media Latepost was shared by cnevpost where the Shanghai factoryās 3rd phase upgrade plan is expected to produce the new more affordable EV.
According to the same report, Tesla began construction of this phase back in 2021 but ended up suspending it after recruiting a team to begin undertaking the project.
Tesla needs to accelerate its expansion as the competition for affordable EVs ramps up, particularly in China where it has just a five per cent share, according to Morgan Stanley.Ā A more affordable car production line that delivers cars to local customers and to global markets like Australia will be well received.
Tesla’s lowest cost EV in Australia is the newly refreshed 2024 Model 3, which now starts at $A61,900 but which is out of reach for many drivers across Australia.Ā
Over the past 12 months, several more affordable ground-up EV options have made it to the local market, allowing thousands more to consider a cleaner electric car.
These include the popular MG4 and the BYD Dolphin which together sold more than 1,000 EVs in November. This number is expected to increase significantly in the coming months.
The Shanghai plant currently has an annual production capacity of 1 million cars. In the first 11 months of 2023, the factory has produced over 850,000 vehicles. It will get to over 900,000 vehicle production rate in 2023, despite multiple production line upgrades toĀ accommodate production of the new Model 3.
More details of the expansion and the $US25,000 Tesla are likely to surface in the coming months.
RizĀ is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.