The U.S. electric carmaker Tesla plans to build a 25,000-euro ($26,837) car at its factory near the German capital Berlin, a source with knowledge of the matter said on Monday, in a long-awaited development for the company, aiming for mass uptake of its cars.
The source, who declined to be named, did not say when production would begin.
Tesla declined to comment.
Chief executive Elon Musk visited the plant in Gruenheide on Friday after attending an artificial intelligence summit in England and thanked staff for their hard work, a video showed on social media platform X, formerly Twitter.
At the same meeting, he also informed staff of plans to build the 25,000-euro vehicle there, the source said.
The German plant currently produces the Model Y, Europe's bestselling EV.
Musk had long planned to make a more affordable electric car but said in 2022 that he had not yet mastered the technology and shelved the plan.
Still, sources told Reuters in September the carmaker was closing in on an innovation that would allow it to die cast nearly all of the underbody of the EV in one piece, a breakthrough that would speed up production and lower costs.
Expanding into the mass-market is critical to meet Tesla's goal of increasing vehicle deliveries to 20 million by 2030, a tenfold increase from current capacity.
However, a weak economy and high interest rates have hit demand for electric vehicles, prompting Tesla and others to cut prices in recent months in an attempt to boost sales.
Tesla also informed workers on Friday that all staff would receive a 4% pay raise from November onward, with production workers receiving an additional 2,500 euros per year from February 2024.
