Tesla has been exploring opportunities to produce affordable electric cars for years. The company’s most affordable vehicle is currently the Model 3, which starts at 43 thousand Euros in Germany. New allegations showed that Tesla is working on an electric car costing 25 thousand Euros for Europe.

Tesla may produce a €25,000 model in Germany

According to the report in Bloomberg, Tesla CEO Elon Musk met with Gigafactory Berlin in Germany and received information about an affordable mode. The vehicle to be produced at the Berlin plant is expected to cost 25 thousand Euros. This means that the 43 thousand Euro Model 3 will be offered to customers at almost half the price.

Elon Musk, who met with the factory last week, told employees during the meeting that more share should be taken from the growing low-cost electric car market in Europe. Tesla has been unable to lower its prices after the inflation effect seen across Europe. The new model could compete with brands such as Citroen and Dacia.

With this model, BYD will also challenge Chinese brands such as Nio and MG to increase their sales in Europe. Details about the cheap model Tesla remain unclear yet.

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