In a highly anticipated move, Tesla is gearing up to unveil its budget-friendly electric car in the early months of 2025. Recent reports indicate that the renowned electric vehicle manufacturer has reached out to numerous Chinese suppliers to strategize the production of this cost-effective automobile.
Tesla has engaged with a staggering 20 component suppliers in China, urging them to establish manufacturing facilities in close proximity to the production site of the upcoming affordable electric car. The company’s plan is to assemble these economical vehicles at their newly established factory in Mexico.
By encouraging suppliers to establish factories for seamless production, Tesla aims to capitalize on the favorable provisions outlined in the latest regulations established by the United States government.
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These regulations grant a tax deduction of USD 7,500 for electric vehicles that consist of at least 75 percent locally manufactured components from North American regions, including the United States, Canada, and Mexico, as reported by Weixin.
As Tesla pushes for local component manufacturing in Mexico, it poses a substantial challenge to Chinese suppliers. Failure to comply with Tesla’s requirements may lead to the termination of existing cooperation contracts, resulting in an inability to supply components for Tesla vehicles. Consequently, suppliers who are reluctant to aid Tesla in producing affordable electric cars could face significant setbacks.
Elon Musk, the visionary CEO of Tesla, has set his sights on creating an electric car with an astonishingly low price tag of USD 25,000 or approximately Rp. 373.3 million. The vehicle, rumored to be named Tesla Model 2, is projected to dominate the market due to its unparalleled affordability.