Cheaper Tesla Coming? EV Maker Reportedly Plans To Make 4M 'Smaller' Model Ys Per Year

Electric Vehicle giant Tesla Inc TSLA is said to be planning to make millions of units of a new, lower-priced car soon.

What Happened: The Elon Musk-led company is planning an annual capacity of up to 4 million units for a lower-priced, small version of Model Y, CnEVPost reported, citing a local Chinese media platform 36 Krypton.

The four million unit capacity will be spread across Tesla’s factories in North America, Berlin, and Shanghai, the report added.

See Also: Everything You Need To Know About Tesla Stock 

Why It Matters: Tesla has long been rumored to release a budget model of its EV at the sub-$25,000 price point. 

At Tesla’s Battery Day in 2020, Musk said the $25,000 car will be released in 2023, and it may not have a steering wheel.

However, in January last year, Musk said that the electric vehicle maker is not working on a more affordable vehicle. "We're not currently working on the $25,000 car," Musk said. "At some point, we will. We have enough on our plate right now. Too much on our plate, frankly."

There were no announcements on the “affordable EV” at Tesla’s investor day in March.

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