Tesla China's Dedicated R&D Center Suggests $25K Car Will Become Reality

There are still some unanswered questions, but Tesla China's new Supercharger facility will house an R&D center.

Tesla Gigafactory 3 images progress

Steven Loveday

By: Steven Loveday

Jan 4, 2021 at 1:11pm ET

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Teslarati published a recent article highlighting a report from China-based publication Xinhua News Agency. Essentially, it explains that Tesla's new dedicated Supercharger facility will also include a new in-house Research and Development (R&D) center. The Supercharger facility is set to open this first quarter of 2021, with a goal of producing some 10,000 Superchargers per year.

While the Supercharger news is certainly exciting, as is the other recent news that Model Y production and deliveries are underway in China, the news of the potential for a $25,000 Tesla vehicle is arguably much more newsworthy. Why are publications mentioning the cheaper Tesla?

The details state that Tesla has plans to set up a dedicated R&D center to be used for local product design in China. Tesla and CEO Elon Musk have already shared that there is the potential for a $25,000 Tesla for the Chinese market. It would make sense that the new R&D center that will be housed alongside Tesla's Supercharger facility could be used for initial and/or long-term research related to the upcoming $25,000 Tesla.

On the flip side, Tesla could also choose to set up a separate location for the car research. Either way, with the Supercharger facility and R&D center news now a reality, the upcoming vehicle plans could come to the forefront.

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Musk has mentioned the potential for a cheaper Tesla on multiple occasions, though the more recent talks about a less expensive Tesla for the Chinese market suggest it will arrive in the next three years. Keep in mind, Tesla built the Shanghai factory in record time and completed Phase 2 for the Model Y much more quickly than people anticipated. The Supercharger news came as a bit of a surprise not long ago, so it's crazy to learn about this latest progress.

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It makes sense for Tesla to release an inexpensive car, especially in China, where its rivals are currently beating it when it comes to price. Since Tesla's vehicles are already selling remarkably well in China, it would be very surprising if the company didn't come to market with a cheaper option to maintain momentum. There's little doubt people in China would flock to purchase it.

Source: Teslarati

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