Elon Musk announced to his employees that the Tesla Model 2 and the Semi truck also aim to be manufactured in Germany.

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By robb the singh

The Tesla Gigafactory in Germany has been in the spotlight in recent weeks. From the brand’s plans to expand its facilities there, the negative vote from the region’s residents, and, most recently, the attack on a nearby electricity tower that has left Giga Berlin unable to operate normally for more than a week.

Tesla Model 2

Elon Musk, CEO of Tesla, was there last Wednesday, visiting its facilities after the terrorist attack that will cost the brand hundreds of millions of dollars in damages. And his visit, as usual, has not gone unnoticed, to the point that the German media Handelsblatt has published some of the conversations between Musk and his employees.

And they have not been trivial topics: the boss of Tesla confirmed, always according to what was published by a German publication, that the production of his future cheap electric vehicle will also take place in the Berlin Gigafactory. Not only that but the company’s electric truck, the Semi, currently produced in Nevada in small quantities (the production rate is expected to increase as early as this year), could also be manufactured in Germany very soon.

Tesla Model 2

The new electric compact SUV planned by Tesla, called by the press as Model 2, is scheduled to begin production next year at the Texas plant, where the Cybertruck pick-up is also being brought to life. Musk has long recognized the difficulties in scaling production of both models, so the “long-term” expansion of its production to Germany could be one of his solutions.

The Tesla Model 2 price is expected to start at less than $25,000, about 23,000 euros. The fact that it can also be built in Europe could be a real boost for the brand on this side of the pond, which assures that this model alone will accumulate more sales than those combined by the rest of the Tesla range.

The Tesla Model 2 will rely on new revolutionary manufacturing processes that will allow it to settle on a new platform that promises to be 50% cheaper. All to promote the expansion of the brand and fully confront the future of cheap electric cars in Europe, including the Chinese ones.

However, Evercore analysts have recently warned that the production estimates for this Tesla Model 2 will be lower than expected in 2026: they point to a maximum production of half a million units, half of what the brand aspired to, and they affirm and, the total volume of deliveries will not increase again until 2027, since the Model 2 is expected to end up stealing sales from its older brothers Model 3 and Model Y.

Source- Handelsblatt

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