Tesla plans to produce 4 million units of its upcoming cheaper EV

According to industry sources related to Chinese media, Tesla is planning to produce 4 million units per year of its upcoming cheaper EV. Supposedly, the EV will be a smaller and more affordable version of the Model Y. Elon Musk has announced that the company is aiming at a sub-$25,000 price tag and a range of at least 400km.

Of the total 4 million, 2 million will come out of the Monterrey, Mexico facility while the Gigafactories in Berlin, Germany and Shanghai, China will each roll out 1 million units per year.

A smaller version of the Model Y crossover won't pose any interest in US buyers, so Tesla will likely focus on overseas markets such as the Europe.

And even though Elon Musk promised that the vehicle will hit the streets by the end of this year, analysts remain skeptical. Bringing down the price tag to $25,000 while offering full autonomy features and a range of 400km is no easy task with the current prices of batteries. And knowing Tesla's track record with deadlines we won't be holding our breath either. But whenever mass production comes you can be sure that it will change the EV market for good.

Source (in Chinese)