Tesla is getting ready to storm the electric compact hatchback segment with a new yet-unnamed model coming in 2023. The “baby Tesla” announced in 2020 by Elon Musk is expected to offer a longer driving range than its main rival, the Volkswagen ID.3, and feature a more affordable starting price of around $25,000.
The new Tesla will compete with the likes of the VW ID.3, and Nissan Leaf. However, its pricing will undercut its main rivals even from one segment below, like Europe’s Peugeot e-208 or the Honda e.
Tesla will reportedly be able to achieve this price thanks to its new 4680 battery cells which will allow a 50% decrease in production cost (around $107 per kWh). At the same time, the battery will be able to store five times more energy bringing a 16% increase in range.
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Autocar reports that the cheapest Tesla will offer a WLTP range of at least 250 miles (402 km) which will be higher than the base-spec VW ID.3 (217 miles / 350 km). This is the lowest acceptable range for a Tesla product, at least according to CEO, Elon Musk. On the other end of the spectrum, the flagship version of the hatchback will probably match the Tesla Model 3 Long Range (352 miles / 566 km).
Styling-wise, the baby Tesla will bear similarities with the Model 3, even though it will feature a hatchback-style two-box silhouette with more compact dimensions. The design was previewed by an official sketch shown a year ago showing similar headlights a shorter bonnet and a heavily inclined roofline.
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The upcoming baby Tesla is expected to be offered in Europe at a base price of £20,000 ($27,831 / €23,314). The models destined for the European market will reportedly be produced alongside the Model 3 and Model Y at Tesla’s new factory in Berlin (Germany) opening in early 2022. Earlier reports suggested that the hatchback will be produced in China. We will learn more information about the upcoming bestseller in the coming months as we reach closer to the model’s market launch in 2023.
