Speaking during a profit call last week, Elon Musk expressed his point that the cars that Tesla is currently building are still too expensive. Even with the introduction of Model 3, which in the United States now starts at $ 37,990, Musk believes the automaker needs an even cheaper model.
Musk told investors he was on the call with that.
‘It is important to make the car affordable. What bothers me most where we are now is that our cars are not affordable enough. We need to fix that. ‘
He didn’t give a specific time frame for when this new model would hit the market, but we imagine it would be smaller than Model 3, and it may not even be built in the US (or China). In early July, Musk responded to a tweet specifically asking about a ‘smaller European-style hatchback’ saying he would.
‘It is probably good design and engineering in Germany. ‘
And since it would be a model aimed at the European market, it could end up being built also in the new Tesla Gigafactory in Germany. If the automaker gives the go-ahead for this project, then it may end up being called the Tesla Model 2.
