Tesla's Ambition in Grünheide: A New Entry-Level Model and Boosted Salaries
Word on the street is buzzing about Tesla's plans to produce an entry-level model at their Grünheide factory in Germany. This budget-friendly car is set to cost just 25,000 euros, as confirmed by a source close to the matter to Reuters. Tesla CEO Elon Musk made this announcement during his visit to the factory last week. Previously, Tesla's best-seller, the Model Y, had been rolling off the production line in Grünheide, with plans to double its capacity to a million cars annually already in the works.
Elon Musk expressed his gratitude to the employees during his visit, announcing a 4% pay rise effective from November. Additional pay hikes in the form of inflation adjustments and employee wage increases are also promised. This move comes after union activity and criticisms over wages being 20% lower than the industry standard. However, Tesla explained that the wage adjustments have nothing to do with the union activity, but rather, they're a part of a routine internal process.
Tesla's Vision for a Low-Cost Model
Tesla has long been aiming for a budget-friendly electric vehicle, and while they had put these plans on hold due to technical difficulties last year, they're now back on track. In September, Reuters reported that Tesla was close to manufacturing the entire underbody of the vehicle in one piece – an innovation that could help cut costs and expedite production. A vehicle suitable for mass production would be a significant stepping stone for Tesla, with the goal of surpassing traditional giants like Volkswagen, Toyota, and General Motors with sales of 20 million cars by 2030.
Enhancements to the Model Y
Per a report by NTV, Tesla's latest developments include revisions to the Model Y, which will be manufactured at the Grünheide factory. Design changes include LED strips across the front, narrower headlights, and a front camera for autonomous driving capabilities. Interior upgrades include an improved eight-inch screen for climate, entertainment, and seat settings, redesigned front seats with ventilation, and electrically adjustable rear seats that can collapse for additional luggage space. The performance and range of the vehicle will also be improved, with a launch version accelerating from 0 to 100 km/h in just 4.3 seconds and an all-wheel drive version offering a range of 568 km in the WLTP cycle.
Conclusion
Tesla's strategy to increase production at Grünheide is pivotal to achieving its ambitious sales targets. The success of the updated Model Y in the European market could significantly contribute to Tesla's goal of surpassing traditional volume manufacturers by 2030. With an entry-level model in the pipeline and a focus on enhancing the Model Y, Tesla is set to make waves in the European EV market.
