Tesla intends to produce its $25,000 electric car in India and Mexico by 2025 or later, following Elon Musk’s strategy of maximizing current factory capabilities. The company aims to reach an annual production of 1.8 million vehicles by 2023, with factories in the US, Germany, and China, although its total capacity amounts to 3 million vehicles yearly.
During an earnings call, Musk forecasted a 50% production surge by 2023, suggesting full utilization of existing capacity by 2024, potentially extending into 2025. This timeline aligns with India’s electric vehicle policy mandating local manufacturing by 2027, coinciding with Tesla’s plan to introduce new models by mid-2025. Despite potential cost implications, Musk affirmed the feasibility of producing new models, including affordable ones, alongside existing vehicles, leveraging Tesla’s 3-million-vehicle capacity to achieve a 50% growth by 2023 before contemplating new manufacturing investments.
