Production Plan Announced in Germany
High Wages and Other Obstacles Pile Up
"Realization May Not Be Easy"
American electric vehicle manufacturer Tesla plans to produce electric cars priced in the 30 million won range in Germany.
According to major foreign media on the 6th, Elon Musk, Tesla's CEO, visited the Gigafactory at Gr?nheide, on the outskirts of Berlin, Germany last week and told employees that they would produce electric cars priced around 25,000 euros (approximately 34.9 million won).
The foreign media also explained, "Tesla is getting closer to technology that integrates the lower body of electric vehicles into a single unit," adding, "This is a revolutionary process that can increase production speed and significantly reduce costs."
In the first half of this year, the average retail price of electric vehicles in Europe was about 65,000 euros (approximately 90.84 million won), and Tesla's 'Model 3' is sold in Germany starting from 42,990 euros (approximately 59.9 million won). If the affordable electric car mentioned by Musk is released, it will be about 30% cheaper than the 'Model 3'.
However, it was added that there was no specific mention of when the production of this affordable electric car would begin.
Tesla is pushing plans to double the production capacity of its German factory, but it has not yet received approval from local regulatory authorities.
Another foreign media outlet noted, "This news comes just one month after the European Union (EU) launched an investigation into subsidies for electric vehicle manufacturers in China."
Tesla produces its cheapest electric car, the 'Model 3', at its Shanghai factory in China and exports it worldwide. There is an interpretation that Tesla is seeking alternatives due to the possibility of difficulties arising from regulations within Europe.
However, the foreign media pointed out, "Germany generally has high wages and energy costs, which are expensive for production, so Tesla's plan to produce affordable electric cars may not be easy."
Earlier, Musk revealed a wage increase plan last weekend at the German factory, which includes a 4% raise for employees.
It is reported that this wage increase plan also includes an additional annual raise of 2,500 euros (approximately 3.49 million won) for production workers starting from February next year. Adding this up, it means about an 18% wage increase over a year and a half.
Meanwhile, Tesla's stock price was down 1.11% compared to the previous trading day as of 12:30 AM (Eastern Time) on the New York Stock Exchange that day.
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