The American automaker Tesla plans to produce an electric car for 25,000 euros (almost CZK 610,000) in its German plant. This was said by the head of the car company, Elon Musk, during his Friday visit to the factory near the village of Grünheide near Berlin. In a meeting with employees, he mentioned, among other things, a plan to produce a 25,000-euro vehicle there, a Reuters source said.

Musk had long planned the production of a more affordable electric car, but in 2022 he declared that the automaker had not yet mastered the necessary technology and postponed the plan. In September, sources told Reuters that Tesla was approaching an innovation that would allow it to cast almost the entire chassis of an electric car in one piece. It would be a breakthrough that would speed up production and reduce costs.

The German gigafactory currently produces the Model Y, currently the best-selling car in the world. But its price starts slightly above the level of 50,000 euros (1.2 million crowns), the new compact model should cost roughly half that. The average retail price of electric cars in Europe in the first half of 2023 exceeded 65,000 euros (almost 1.6 million CZK), research company Jato Dynamics reported. In China it was just over 31,000 euros.

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The Chinese giant BYD is already grinding its teeth on Europe. You can already officially buy his cars here, but only in selected markets.

Which brings us to the plans of Tesla’s biggest competitor, Chinese giant BYD, which sold 1.8 million electrified models (PHEVs and BEVs) last year, while Tesla produced 1.3 million pure EVs last year. Their direct battle may take place in just a few years on the European market.

The newspaper Frankfurter Allgemeine Sonntagszeitung reported that BYD has already chosen the country where it will build its first European factory – it should be Hungary. However, the Hungarian government has yet to comment on the news, and the automaker says it is still selecting locations and will announce its decision before the end of the year.

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Importing cars from China makes the final product quite expensive. The compact BYD Dolphin costs at least 30,000 euros (730,000 crowns) in Europe, and you can buy it in China for half that amount.

However, Hungary is open to the automotive industry, Mercedes-Benz, Audi and Suzuki already operate a factory here, and in 2025, BMW will also launch a production line for its Neue Klasse. For BYD, this country could then become a great springboard for conquering Europe.