Musk talks about Tesla's €25k vehicle that will be built in Berlin
@Gf4Tesla
Tesla's ambitious plan to create an affordable electric vehicle known as the "next-gen" or "Model 2" has taken a new directional shift towards Europe. Those at Elon Musk's recent appearance at Giga Berlin say that Germany will be the latest production site for this much-anticipated EV.
This latest pivot towards Europe follows an earlier change that saw Tesla's production strategy migrate from Mexico to Texas, indicating a fluid approach to finding the optimal manufacturing locale for the new model.
Giga Mexico to Giga Texas, and Now Giga Berlin
The journey of Tesla's $25,000 electric car has been one of adaptability and strategic adjustments. Insights into these shifts came to light in Walter Isaacson's biography of Elon Musk, which narrated Tesla's evolving strategy. The initial blueprint placed Giga Mexico in a pivotal position until logistical challenges prompted Musk to reconsider, resulting in Tesla eyeing Giga Texas.
Despite these changes, Giga Mexico remained a significant piece of Tesla's production puzzle until Musk's latest indications suggest that Giga Berlin could become a central hub for the European market's demands — catering to the Europeans' appetite for smaller cars and affordable, sustainable mobility.
Giga Berlin's Role in Tesla's Strategy
With the announcement in Berlin, Tesla seems to be refining its strategy once more, adapting its production base to not only meet market demands but also optimize manufacturing processes.
During the third quarter earnings call, Musk outlined the production vision for the Model 2, which stands in stark contrast to Tesla's more radical Cybertruck. This next-gen vehicle is pegged to have a conventional approach in manufacturing yet aims to set a new benchmark in efficiency and production volume.
Embracing Efficiency and Affordability
Musk's articulation of the Model 2 as "utilitarian" underscores a pragmatic vision: a functional, efficient, and affordable EV that still upholds Tesla's design ethos. This approach aims to achieve unprecedented economies of scale and bring electric vehicles to a broader market.
Tesla's choice to leverage Giga Berlin for Model 2 production is more than a geographic decision — it's a strategic play that could enhance the company's presence in Europe. This move aligns with Tesla's pursuit of operational efficiency, market-specific tailoring, and, possibly, advantageous manufacturing incentives available in the region.
Tesla's persistent focus on a $25,000 EV signifies a steadfast commitment to making electric vehicles more accessible. Should Tesla overcome the economic barriers, the Model 2 has the potential to redefine mainstream vehicle ownership, propelling the adoption of EVs globally.
Elon Musk thanks all Giga-4 employees. A really big praise to the entire Giga-4 team for the really great work that you do again and again and create great cars. Giga-4!@teslaeurope@Gf4Tesla@elonmuskpic.twitter.com/Oudp0ntiZs
In a move that’s sure to excite those with larger families, Tesla has started teasing the return of the seven-seat configuration for the Model Y. In a new marketing email sent out to customers recently, Tesla explicitly highlights the vehicle’s spaciousness.
“Ready for anything with long range, seating for up to seven, and enough room for everyone’s gear.”
The seven-seat Model Y was initially offered in late 2021, but it hasn’t been available since Spring 2023. The return of the new variant will be an addition that many have been waiting for, as the next vehicle with that much passenger space in the line-up is the Model X, starting at almost double the price.
First-Gen Model Y Third Row
The original seven-seat Model Y was extremely popular in the Asia-Pacific and European markets, and it still sold fairly well in North America despite differences in preferred vehicle sizing and spaciousness. It offers additional seats for larger families with young children, but space in the third row is minimal.
The seven-seat variant makes the Model Y more competitive against other three-row SUVs on the market. The video below features the seven-seater, first-generation Model Y.
Power Reclining Third Row?
The refreshed Model Y was launched with power-reclining second-row seats, a huge plus for practicality and ease of use. The power-reclining second-row seats are extremely popular with families and are very helpful, as you can control them from the front screen rather than needing to open the rear doors.
Tesla is likely to integrate power-reclining seats into the third row and potentially keep them for the second row as well. With the second row sliding forward and backward for easy entry, as well as allowing the second and third rows to fold flat for additional cargo room when needed.
Launch Date and Price
Tesla’s tease of the seven-seat variant is likely just the start. With recent sightings of the Model Y Performance variant hitting the Nürburgring, it seems Tesla has a lot in store for this summer. If you’ve been waiting for the seven-seat variant, it seems like it’ll be just a few short months away at this rate.
While we haven’t seen any production samples or other details regarding dates yet, Tesla previously priced the seven-seat option at an additional $2,000 USD ($3,000 CAD). The seven-seat option will likely only be available on the Long Range AWD and Long Range RWD variants, not the Performance model, similar to the first-generation Model Y.
In Elon’s flurry of posts on X about FSD yesterday, he also revealed the date that another moment of peak science fiction would be occurring — June 28th. Tesla expects to conduct the first-ever self-delivery, where a brand-new Model Y will depart from the production line and arrive directly at its new owner’s home without any human intervention.
Imagine ordering a vehicle, and a few days later, rather than needing to pick it up, it simply arrives in your driveway and notifies you via an app that it has arrived. That’s no longer the talk of science fiction; it is quite literally something that is likely to happen this month.
Expect a Model Y Delivery in Austin
Considering everything Tesla has done so far, we’re fairly certain that the first self-delivered vehicle will be a Model Y in Austin, in the same geo-fenced area where Tesla’s Robotaxi will operate. FSD is highly optimized for the Model Y, and it’ll take some time for those optimizations to trickle down to the rest of the fleet. It’s not clear if FSD performs better on the Model Y because it’s the most popular vehicle and, therefore, Tesla has the most data for it or if Tesla explicitly chose to focus more on their most popular vehicle.
Tentatively, June 22.
We are being super paranoid about safety, so the date could shift.
First Tesla that drives itself from factory end of line all the way to a customer house is June 28.
While a car driving itself is something truly different from what other manufacturers offer, there are also numerous strategic advantages for Tesla to do so. This includes drastically reducing last-mile delivery costs by minimizing the need for car carriers, delivery drivers, and even delivery personnel at your local Tesla center. For customers, it could mean a faster, more flexible delivery method - and one absolutely unforgettable welcome to Tesla ownership.
We recently took a closer look at the advantages and disadvantages of vehicles delivering themselves to customers. While it’s all positive for Tesla, there are some potentially negative sides to it as well.
A Futuristic Glimpse
When you step back and look at it, Self-Delivery is a logical extension of Unsupervised FSD and the Robotaxi network in general. Self-deliveries are expected to run on the same software stack that powers the Model Ys currently roaming Austin’s streets autonomously, which means there is little for Tesla to do other than enable specific instructions for self-delivery during the final vehicle configuration steps.
Given Elon’s note that the dates could shift, this could easily be moved to early July; however, either way, it seems like we’re just weeks away from this monumental event, which will further reduce the cost of Tesla vehicles.
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