Tesla is reportedly in the early stages of planning for a smaller version of the Model Y, according to a report from Chinese media outlet 36kr. Citing industry insiders with knowledge of the plans, the report claims that Tesla is building an annual capacity plan of up to four million units for a “low-priced small Model Y” that will be produced across its factories worldwide, including the newly announced Gigafactory Mexico.
The sources stated that Tesla’s North American plants, Fremont, Giga Texas, and Giga Mexico, will take on two million units of capacity, with the Mexico plant taking on the bulk of that capacity. Meanwhile, the factories in Berlin and Shanghai will each take on one million units. However, production is at least a year away, and Tesla has yet to comment on the report.
While it is no secret that Tesla wants to produce a cheaper electric vehicle priced at around $25,000, it is not clear if this smaller Model Y is the same vehicle that has been referenced over the years. CEO Elon Musk has previously stated that a $25,000 Tesla could arrive as early as 2023, and the smaller Model Y is expected to be cheaper than the larger version.
This move by Tesla could be seen as a strategic response to the growing demand for more affordable electric vehicles. With the smaller Model Y, Tesla could potentially reach a wider customer base and further establish itself as a leader in the electric vehicle market. As always, the industry and consumers alike will be eagerly awaiting further news from Tesla on this development.
