Tesla Expands Model Y Offering in Europe
On Friday, Tesla announced a new Model Y configuration that is now available for order in Europe. The company has added the rear-wheel drive model Y to its lineup, which is now available in many countries across Europe. In Germany, the new Model Y is priced at around 54,000 euros, depending on value-added tax and local incentives. The rear-wheel drive model Y sits slightly above the standard Model Y in terms of pricing, with a range of between 50,000 euros and 60,000 euros.
According to Tesla, the new Model Y is based on the same specs as the standard range lithium iron phosphate vehicle exported from Shanghai. The exact same specs are available on the Chinese order page and the Model Y available in Germany and other European countries. Although the news is considered less exciting as it was thought that the new Model Y was built in Giga Berlin, the vehicle should be more profitable for Tesla to sell in Europe.
Update on Giga Berlin
The Jefferies Group has released an update on the Giga Berlin factory tour. According to the report, Tesla highlighted that the Berlin and Austin ramps will further dilute higher costs from the Fremont plant. The cost mix right now is higher in Fremont and lower in Shanghai, but with the advancements that Tesla has made with Giga Shanghai, the costs in Berlin and Austin should be lower as well.
Furthermore, the report highlights that Tesla’s focus on cell production in Berlin should help the automaker reduce costs and improve production efficiency. There has been a lot of speculation around Tesla building its own battery cells, and the Giga Berlin factory will put an end to this speculation. The factory will have dedicated lines for battery manufacturing, which will reduce the reliance on external suppliers and increase control over the supply chain.
Panasonic Factories Rumors
There have been rumors that Panasonic is planning to build a new battery factory that will supply Tesla’s Giga Berlin plant. After Toyota’s recent announcement that it will invest $13.6 billion in battery development and production, many automotive analysts speculate that Panasonic will build a new factory to compete with Toyota. However, both Tesla and Panasonic have declined to comment on these rumors, stating that they are not sure what they will be doing in the future.
SpaceX announced a new partnership with T-Mobile, but the partnership will only indirectly benefit Tesla. T-Mobile announced that it is partnering with SpaceX to provide internet connectivity to the world. The partnership will allow T-Mobile to use SpaceX’s Starlink satellite network to provide internet connections to rural and remote areas that are not served by conventional internet service providers. Although this partnership does not directly benefit Tesla customers, the new technology could enable Tesla to offer its customers more advanced features and functionality in the future.
The Tesla stocks were down approximately 2.7% on Friday to close at $288 post-split. With the Nasdaq down four percent on the day, Tesla performed better than several other tech giants such as Amazon and Nvidia. The market reacted negatively to Fed Chairman Jerome Powell’s announcement at the Jackson Hull Symposium. Powell stated that the Fed would use its tools forcefully and that they would focus on restoring price stability, which would require a restrictive policy stance.
In summary, Tesla has expanded its Model Y offering in Europe, including the new rear-wheel drive model Y. The Giga Berlin factory will help Tesla reduce costs and improve production efficiency, with the automaker focusing on cell production in the new factory. Panasonic is rumored to be building a new battery factory to supply Tesla’s Giga Berlin plant, while T-Mobile is partnering with SpaceX to provide internet connections to rural and remote areas. Despite some negative market reactions to the Fed’s announcement, Tesla stocks performed better than several other tech giants on Friday.