Musk talks about Tesla's €25k vehicle that will be built in Berlin
@Gf4Tesla
Tesla's ambitious plan to create an affordable electric vehicle known as the "next-gen" or "Model 2" has taken a new directional shift towards Europe. Those at Elon Musk's recent appearance at Giga Berlin say that Germany will be the latest production site for this much-anticipated EV.
This latest pivot towards Europe follows an earlier change that saw Tesla's production strategy migrate from Mexico to Texas, indicating a fluid approach to finding the optimal manufacturing locale for the new model.
Giga Mexico to Giga Texas, and Now Giga Berlin
The journey of Tesla's $25,000 electric car has been one of adaptability and strategic adjustments. Insights into these shifts came to light in Walter Isaacson's biography of Elon Musk, which narrated Tesla's evolving strategy. The initial blueprint placed Giga Mexico in a pivotal position until logistical challenges prompted Musk to reconsider, resulting in Tesla eyeing Giga Texas.
Despite these changes, Giga Mexico remained a significant piece of Tesla's production puzzle until Musk's latest indications suggest that Giga Berlin could become a central hub for the European market's demands — catering to the Europeans' appetite for smaller cars and affordable, sustainable mobility.
Giga Berlin's Role in Tesla's Strategy
With the announcement in Berlin, Tesla seems to be refining its strategy once more, adapting its production base to not only meet market demands but also optimize manufacturing processes.
During the third quarter earnings call, Musk outlined the production vision for the Model 2, which stands in stark contrast to Tesla's more radical Cybertruck. This next-gen vehicle is pegged to have a conventional approach in manufacturing yet aims to set a new benchmark in efficiency and production volume.
Embracing Efficiency and Affordability
Musk's articulation of the Model 2 as "utilitarian" underscores a pragmatic vision: a functional, efficient, and affordable EV that still upholds Tesla's design ethos. This approach aims to achieve unprecedented economies of scale and bring electric vehicles to a broader market.
Tesla's choice to leverage Giga Berlin for Model 2 production is more than a geographic decision — it's a strategic play that could enhance the company's presence in Europe. This move aligns with Tesla's pursuit of operational efficiency, market-specific tailoring, and, possibly, advantageous manufacturing incentives available in the region.
Tesla's persistent focus on a $25,000 EV signifies a steadfast commitment to making electric vehicles more accessible. Should Tesla overcome the economic barriers, the Model 2 has the potential to redefine mainstream vehicle ownership, propelling the adoption of EVs globally.
Elon Musk thanks all Giga-4 employees. A really big praise to the entire Giga-4 team for the really great work that you do again and again and create great cars. Giga-4!@teslaeurope@Gf4Tesla@elonmuskpic.twitter.com/Oudp0ntiZs
Tesla recently showed off Giga Small Haus, an interesting new display project hosted at Giga Berlin. The small new house is located just outside the main entrance of Tesla’s Giga Berlin factory, with a Quicksilver Model Y parked inside.
Giga Small Haus is powered only by solar and Powerwall 3 - disconnected from the local grid and from Giga Berlin itself. It serves as a live demonstration of Tesla Solar and Tesla’s Powerwall battery backup.
Giga Small Haus
The centerpiece of the display is a Model Y in Quicksilver - a beautiful pick for a beautifully lit house. However, that’s not the real focus here - it's the Powerwall and Gateway on the wall.
The Powerwall is the focus of Giga Small Haus, and there’s a display with some additional information on the wall. Part of the display also includes a screen that displays the current output of the Powerwall itself versus the consumption of Giga Small Haus, as well as the input from solar.
The interior exhibit of Giga Small Haus
Not a Tesla App
The text on the exhibit is divided into several sections. Here’s a translated and edited version of what we can see from Tesla’s images. Some additional text is obscured. If someone visits Giga Small Haus, let us know.
Powerwall
Powerwall is a home battery system that stores energy from solar panels, the electrical grid, or during off-peak hours and powers your home during the day or during a power outage.
With Powerwall, you can use self-generated solar energy during the day and night, thus avoiding high electricity costs. You can also store excess energy produced during sunny periods for use during times of low production or power outages.
Key Features
Energy Storage: Powerwall stores excess energy from solar panels or the grid for later use or during power outages.
Backup Power: In the event of a power outage, Powerwall automatically switches to battery power to ensure continuous power supply.
Integration: Powerwall can be seamlessly integrated with existing solar systems and other power sources.
Scalability: Multiple Powerwalls can be installed to meet higher energy storage needs.
Smart Energy Management: Powerwall works with Tesla's software to optimize energy consumption and reduce costs.
How Powerwall Works
Storage: During the day, when solar panels produce more energy than needed, the excess is stored in Powerwall.
Usage: At night or during times of low solar production, the stored energy is used to power the home, reducing reliance on the grid.
Backup: During a power outage, Powerwall automatically provides power to critical circuits, ensuring continuous operation of essential appliances.
Benefits
Cost Savings: By storing and using solar energy, you can reduce your electricity bills.
Reliability: Provides backup power during outages, ensuring your home remains powered.
Sustainability: Promotes the use of renewable energy by storing excess solar production for later use.
Overall, Giga Small Haus is an interesting real-life demo of what Powerwall and Solar can accomplish. It would be neat if Tesla built more of these displays - perhaps near major Delivery and Service Centers and at Giga Texas, Fremont, Giga Shanghai, and other facilities. Many Tesla owners have yet to learn about and experience some of Tesla’s Energy products.
Tesla has added the Acceleration Boost option to the Tesla store for owners of the 2024 Model 3 Long Range - specifically owners in Australia and China. Acceleration Boost is an upgrade that provides a significant performance boost, drastically narrowing the performance gap between the Long Range and Performance versions of the same model.
This upgrade will likely become available in Europe, Canada, and the United States in the next few days as Tesla updates its shops globally.
Acceleration Boost
This new Acceleration Boost is retailing for $3,000 AUD, or approximately $2,000 USD. That’s the same price for current owners of older Model 3 or Model Y Long Range vehicles, which all have the option to purchase Acceleration Boost through the shop.
The boost provides improved 0-100km/h (0-60mph) performance, bumping the 2024 Model 3 LR from 4.4s to 3.8s. The 2024 Performance version comes in at a blazing fast 2.9 seconds, so while it isn’t equivalent to just buying a performance variant in the first place, it is still a noticeable and significant upgrade.
Performance variants also come with a different front fascia vent for cooling, performance drive units, sport seats, adaptive suspension, 20-inch wheels, and Track Mode V3. That’s a significant number of additional features in the $10,000 USD price difference between the Long Range and Performance versions.
Should You Buy It?
If you’ve purchased a Long Range model and are itching to go just that little bit faster at every red light, this is the upgrade for you. It previously came with the cost of slightly reducing vehicle range, but the Tesla store doesn’t make a note of reduced range this time around. The 2023 Model 3 and Model Y Long Range models had an efficiency loss of about 5% due to the additional always-available acceleration and cooling.
You could drive in Chill mode to mostly negate that efficiency loss, but what’s the fun in driving in Chill when you just got Acceleration Boost? Anyhow, the shop listing for the 2024 variant doesn’t include this detail, so it's possible Tesla may have worked some more engineering magic.
Overall, if you’ve got the $3,000 AUD burning a hole in your pocket, some Tesla referral credits sitting around, or just want to go faster, it's definitely an upgrade many users find valuable.