Tesla has confirmed plans to manufacture its upcoming $25,000 electric car at Gigafactory Berlin, expanding the factory’s production beyond the Model Y. This announcement follows Tesla’s unveiling of the “Unboxed Process” during its 2023 Investor Day, which aims to improve production efficiency and enable the production of cheaper electric vehicles. The Unboxed Process involves working on separate sections of the vehicle individually and assembling the car in a “more final” stage, deviating from the traditional car manufacturing model. Tesla originally intended to produce the next-gen vehicles at Gigafactory Mexico, but due to delays, it will first build them at Gigafactory Texas, with Gigafactory Berlin now included in the plan.
The confirmation of manufacturing the $25,000 electric car at Gigafactory Berlin comes at a time when efforts to unionize the factory’s workers are underway. IG Metal, a powerful auto industry union in Germany, has been making moves to unionize the workers at Giga Berlin. While Tesla claims that increased wages at the plant have nothing to do with the unionization efforts, the announcement of manufacturing a new vehicle at the factory could provide some job security and potentially alleviate concerns. Previously, Gigafactory Berlin only produced the Model Y and had not announced any new vehicle programs.
Overall, Tesla’s decision to manufacture its affordable electric car at Gigafactory Berlin expands the factory’s production beyond the Model Y. The company’s adoption of the Unboxed Process aims to increase efficiency and enable the production of cheaper electric vehicles, aligning with Tesla’s goal of making sustainable transportation more accessible. Additionally, the announcement could have implications for the ongoing unionization efforts at the factory, potentially providing job security for workers. With these developments, Gigafactory Berlin solidifies its position as a crucial hub for Tesla’s production of electric vehicles in Europe.