Tesla's dream of an affordable electric car priced at $25,000 might become reality in India and Mexico by 2025. However, these cars won't be built in brand new factories. Instead, CEO Elon Musk plans to utilize Tesla's existing facilities in the US, Germany, and China, which currently have a production capacity of 3 million vehicles annually.
This shift comes as Tesla anticipates a 50% production increase by the end of 2024, potentially maxing out their existing capacity. This aligns well with both India's new electric vehicle policy that requires a manufacturing plant within 3 years and Tesla's own plans to launch new models by mid-2025.
While using existing factories might not achieve the lowest possible production costs, it allows Tesla to maximize current capacity and achieve significant growth before expanding. This strategy ensures the affordable car project remains on track, with production slated for the second half of 2025.
