Tesla has achieved its goal of putting European manufacturers of electric cars on the ropes, not all but a few that have been forced to lower prices to counter the American brand. A contest that is on the way to perpetuate in a real war, because the last one that prepares is much more complicated to solve for the competition.
No brand imagined that Tesla was going to lower the prices of its models in China, the United States and Europe in such a way that it started a major war forcing the competition to get into the fray if they wanted to follow in its wake. Some of the European brands gave in and were forced to lower their prices, others did not get into the fray and kept them intact, and only Porsche decided to raise them because it believed it was necessary in order not to diminish their value.
In fact, the lowering of prices of the American brand annoyed many customers who had purchased one of its models to feel a sense of total deception and also reduce the value of their cars. Logically, Tesla is not playing in favor of the EU’s decision to ban combustion cars from 2035, but in favor of its own after seeing how the brand has led the electric market in Germany for several consecutive months, which makes it more likely to become the leader at European level in the coming years.
Tesla aims to manufacture one million units per year by 2030
This is the objective pursued with a new strategy that is already being prepared, and that will not drag European brands. Elon Musk’s firm produces no less than half a million units per year at the Berlin factory, a plant that produces 10,000 units per week, about 4,000 examples of the Tesla Model Y, one of the best-selling models in the Old Continent. This production capacity was not a secret, but a German newspaper has revealed the fuse that will ignite another new war with European brands.
The Californian brand has set itself the goal, and has asked the German authorities for permission to double this annual production, aiming for one million electric cars per year, which means that 20,000 units per week will roll off the assembly lines of the Brandenburg Gigafactory. And why did it ask for permission? The big question that has an answer, and is that it is those responsible for the environment of this German state who have to give the go-ahead for Tesla to expand its factory with new assembly lines, a request they have already submitted and in which they undertake not to use more water than they currently use.
European manufacturers will not be able to follow Tesla if it doubles its capacity.
This was one of the big problems Tesla faced when it was about to start operations at the German plant. But beyond this issue, if the expansion is authorized, the goal of manufacturing one million units before the next decade is more than feasible, a major problem for the European ones that, as they do not have factories dedicated solely to electric cars, and those that do, manufacture more than four models, it is very difficult for them to compete on equal terms.
