Anything Tesla and its founder Elon Musk does makes news. This time the news is about Tesla's new affordable model.
The world's largest electric car company, which recently launched in China, is reportedly developing and manufacturing the long-awaited hatchback that could be the first affordable Tesla model. And the vehicle is being designed and manufactured in China.
A Chinese automotive website reported that a senior Tesla employee at the Shanghai factory said that the upcoming $25,000 hatchback will be built in China using indigenous parts and exported to other global markets. Of course, what we wonder is how Tesla will manage to bring such a car to the extremely price-sensitive Indian market.
The vehicle, often referred to as the Tesla Model 2 and set to be a cheaper variant of the popular Model 3, is expected to be a stripped-down hatchback built on the same platform. In other words, it could launch in India with lower specifications.
According to the report on the Chinese website, Tesla China president Tom Zhu indicates that the new cheaper hatchback could be ready to go on sale within the year. Perhaps, this explains the sales numbers that Tesla hopes to achieve during 2021.
The main issue is that premium cars are not successful in India, so Tesla will have to be very careful about what it launches in the country's market.
We know that Tesla is the global leader in EVs and the only way to maintain its position will be to expand into price-sensitive markets like China and India. And that's where non-premium vehicles will make an impact. For now, the Tesla Model 2 could be the answer.
Update: Tesla denies rumors that its new affordable electric car is being built in China.
Information source: techradar.com
