Tesla could build another model in Grünheide

Tesla will build its 25,000-euro electric car in the German factory. However, there is no information on the timetable. On the one hand, there are several social media posts from people who attended the factory meeting with Musk. On the other, several people confirmed the information to Teslamag. The company itself has yet to issue a statement.

As it is not yet clear when the more affordable compact model will be built in Germany, we can assume that the future entry-level Tesla could initially be built in the new Giga Mexico. Though there is a lot of uncertainty, as the vehicle itself is still under development and the Giga Mexico has yet to be built – Tesla received approval for it at the end of October. And there are already rumours, citing suppliers, that Tesla might not start production in Mexico until 2026 or 2027.

On top of that, the new Musk biography states that the upcoming base model could first be built in Giga Texas. The fact that the plants are already up and running speaks in favour of both Austin and Grünheide, meaning that production could potentially start more quickly.

Still, some adjustments would be necessary for the production in Grünheide. Currently, Tesla only manufactures the Model Y with various drive options for the European markets in Germany. But Tesla’s “Next Generation Vehicles” are based on a new platform. It will be significantly cheaper to produce (-50 per cent) and require less factory space (-40 per cent). This low-cost production is a prerequisite for Tesla to build a cheaper electric car – especially in a high-wage country like Germany.

Speaking of wages, they will soon rise in Grünheide. During his visit there, Musk confirmed the wage increase, saying that the better pay results from a “standard internal process.” The move has allegedly nothing to do with the several days of protests organised by IG Metall in Grünheide in mid-October, during which both sides discussed a planned wage increase.

After wages were increased by around six per cent in mid-2022, they will increase a further four per cent in November. According to local media, the annual salaries of production employees will also increase by 2,500 euros (annually) from February 2024. Taking the wage level before the increase in mid-2022 as a basis, it will be a wage increase of 18 per cent within just over a year and a half, according to Tesla.

teslamag.de (in German), driveteslacanada.ca