Tesla is likely to build a compact electric car “within the next five years”, according to mercurial company boss Elon Musk.
Although the company is still struggling to get fully on top of production of its Model 3, this late-2022 rival to Volkswagen’s upcoming ID is probably the key to Tesla fully establishing itself over the longer term as a global car manufacturer.
The compact Tesla is scheduled to be made in the new Shanghai facility announced by the company last week, alongside the forthcoming Model Y crossover. The factory’s production capacity of 500,000 cars per year suggests that Tesla expects the two models to have significant market potential.
Comment: Tesla is idea rich, time poor
Tesla will arrive relatively late to the compact EV game – Volkswagen’s ID will start rolling out of factories in 2020 – but with what it expects to be a significant competitive advantage: the lower cost of its home-grown battery packs.