For several months, there has been speculation about a smaller and cheaper Tesla model. The hope that Elon Musk would present exciting details or even the complete model on Investor Day 2023 on 01 March 2023 was high, but unfortunately this was not the case. However, Tesla confirmed the construction of a new Gigafactory in Mexico and the associated plan to present another model. Now more details are leaking out, because according to a report from China, Tesla is supposed to set ambitious goals for a new entry-level electric car. Insiders have reportedly learned that production plans for the model call for several million units per year. These are to be distributed across Tesla's factories in Mexico, Shanghai and Grünheide.
Tesla's new electric car is said to be a smaller version of the Model Y for which Tesla is planning an annual capacity plan of up to four million units. This is reported by the Chinese portal 36kr with reference to unspecified sources. To put it all in perspective, in 2022 a total of 1,369,611 electric cars built.
The figure cited is an early capacity strategy. Tesla is signaling to its suppliers that the four million units per year will be distributed across said factories around the world, the report said. The group's U.S. factories will be responsible for two million units, according to the report, with the new factory in Monterrey, Mexico, providing most of the capacity. The Shanghai and Berlin factories are expected to produce one million units each.
Depending on the timeline for building production capacity, the new model may not start up for more than a year, the report said, citing a source. Lastly, Musk makes it clear that there is "a clear path" to deliver a car that costs half as much to produce as the midsize Tesla sedan Model 3.
