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Elon Musk says Tesla will build €25k EV at Giga Berlin

(Credit: Tesla China)

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Tesla CEO Elon Musk visited the company’s German production plant known as Giga Berlin today. He also gave an update on plans for the aesthetic of the plant, as well as a plan for manufacturing the company’s mass-market €25k EV.

Musk has frequently visited Tesla’s production plants to check on the progress of production and operations while also meeting with various team members, including those who are responsible for manufacturing.

While there, Musk said that Tesla would build a €25,000 EV at the plant, according to @Gf4Tesla on X.

The €25k vehicle, which has been a car the automaker has planned to manufacture for several years, would be able to reach a new sector of customers who are unwilling to spend upwards of $30,000 on a new EV.

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The $25k EV from Tesla has been rumored to be built in several markets, including in China and Mexico. Still, Musk revealed today when meeting with employees that it will also be made in Berlin for the European market.

While Tesla has been able to slash prices on its vehicles in recent years, it has not been able to get the Model 3 quite to the $25,000 level.

However, it has been detailed for some time that it would build a vehicle to reach that price point.

Analysts at Loup Ventures said that the car could make its debut in 2024. Still, Tesla will be busy with scaling the Cybertruck at Gigafactory Texas and could wait to launch new projects as Musk expressed concern about interest rates during the Q3 Earnings Call.

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Additionally, recent details have hinted that the vehicle could have a design that the Cybertruck inspires.

Tesla’s $25k car and dedicated robotaxi will be Cybertruck-inspired: report

Musk also said that Tesla plans to cover the entire concrete sector of the Berlin factory with art.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Model Y Performance Review: The Best Trim of the Best Vehicle?

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Credit: Tesla

The Tesla Model Y Performance was in my hands for seven days after the company reached out and got me a brand new unit. As a Premium All-Wheel-Drive owner, I was really interested to see if the Performance trim was worth the $11,000 difference, and what I learned might be a surprise.

The only “performance” version of any Tesla vehicle I’ve had the opportunity to have several days with was the Cyberbeast back in June, and a few days with that made me want a Cybertruck more than I already did. It had white-knuckle speed, and as someone who truly loves to drive a larger vehicle, it fit the bill for everything I wanted out of an electric pickup.

With that past experience, I was truly excited to try the new Model Y Performance, especially considering I own a Model Y already, and after six months of ownership, it has truly won me over as the best car I’ve ever owned. Although my 2008 Ford Escape Hybrid is a close second, mostly due to nostalgia and it being my “dream car” as a kid in high school at the time, the Model Y is unequivocally better, obviously. It’s hard to shake the feelings of your first “nice” car; I think we could all relate to that in a way.

Before I even picked up the Model Y Performance, I was expecting a handful of things: better performance, better handling, more comfortable seats, and a thirst for spirited driving on the windy backroads of Southern Pennsylvania. Admittedly, a snowstorm disrupted a lot of my testing, but I was still able to have some fun in the car.

With that being said, my thoughts are sure to potentially ruffle some feathers.

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First Impressions of the Tesla Model Y Performance

I picked up the Model Y Performance on January 19 and had it for one week. The Ultra Red paint with the White interior option was a great look, and it was fun to have a car with that look, considering my Model Y is Black on Black.

One thing that is really interesting and somewhat surprising is that Tesla hasn’t adjusted the fact that the Ultra Red is a different shade than the Performance brake calipers. Additionally, the rear light bar, which signals braking, is a different shade of red than the car and the brake calipers.

This was something that the Tesla Showroom employees pointed out to me, and, just like they said, I’ll never be able to not see it.

Interior Quality

The first thing I noticed was the Performance seats, which are geared to hug you a tad more and keep you intact during spirited drives. They were, without a doubt, more comfortable than the seats in my Premium AWD.

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Interestingly, when I gave this opinion on X, some Performance owners said that the seats were less comfortable and, on longer drives, I’d feel it. My Fiancè and I drove about 120 miles in the car that weekend, and we had no complaints. They were supremely comfortable, and we both really enjoyed them, almost to the point that we’d rather have those seats than the ones in the Premium AWD.

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Additionally, the center screen is slightly larger, but not to the extent that I had really noticed any true difference. In the new Model Y for 2026, the screen is the same size as the one in the Performance trim at 16 inches.

It was previously 15.4 inches.

Some other changes include Performance pedals that are made of what appears to be a stainless steel alloy and Carbon Fiber accents on the doors and dash. Other than that, there are no significant differences; it’s very similar to the other Premium trims of the Model Y. The big difference from an interior standpoint is simply the front seats.

Exterior Differences

Tesla used a lot of different techniques to help improve performance and aerodynamics, including a carbon fiber spoiler and rear diffuser, both of which help with air displacement and improve handling, range, and overall performance.

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These additions are clean and give the car a sporty look, perfectly catered to the aesthetic Tesla was obviously going for with the car. I’ve already mentioned the brake calipers, which are an awesome touch, but the offsetting tones of red between them and the paint are a bit displeasing to the eye. I hope this is something that is resolved, but it isn’t completely necessary, nor a priority.

The Nitty Gritty – Ride Quality and Performance

With all the changes from an aesthetic standpoint, including the ones that are geared toward improving performance, the real indicator of whether this trim is worth the extra $11,000 is simple: Is it faster and more fun to drive than the Premium All-Wheel-Drive?

I’m going to break that down here:

Speed and Acceleration

There is a slightly noticeable difference in acceleration, as the 4.6-second 0-60 MPH on the AWD is 1.3 seconds slower than the 3.3-second rate on the Performance. Although that sounds like a decent difference, the big change I noticed was the sound. In the Performance, you can really hear those motors hum, which was a nice touch and really interesting and fun to experience.

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It was definitely quicker than my AWD, but I think I really expected to be thrown back into my seat like I was with the Cyberbeast, which features a 2.6-second 0-60 MPH acceleration rate. That was truly a massive difference that anyone can really feel. The 1.3-second difference between the AWD and Performance was, in a way, underwhelming.

I was not disappointed with it, but I really hoped to feel that same rush of adrenaline I had with the Cyberbeast. I think I’m just so used to the acceleration at this point that it does not “wow” me any longer. At the time of the Cyberbeast Demo Drive, I was still driving a gas car.

The Performance, like the AWD, is very capable. It’s great for merging on the highway and getting into a tight window when traffic is heavier. It’s great for taking some quicker drives, and it’s a lot of fun to take out on the road. By no means am I disappointed with it, but I will say maybe my expectations were a tad too high.

Handling

This is where I will say I was sort of disappointed, because I have heard from many people that the suspension is better in the Model Y Performance compared to the All-Wheel-Drive.

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I didn’t really feel like it was “better,” but the same, which is still an absolutely amazing ride experience. My AWD is great for tight turns at increased speeds, where I felt the difference was in the seats, as those Performance ones truly did seem to “hug” me more and keep me more stable.

The Performance trim features adaptive suspension, lower/stiffer springs, and larger wheels, all of which are meant to improve handling. I’m not sure if it is simply because I didn’t get to push it as much as I wanted to due to weather, but I felt like the feel of the ride was really similar to my AWD. I had no complaints.

Overall Thoughts

The Model Y Performance is definitely a sportier look than the AWD and Standard models, and it definitely has its advantages. I think that it’s a really great car, but I did not feel an incredible number of differences from the AWD.

There was a lot to love: the seats, the look, the acceleration. The latter is something that is definitely great if you plan to take your car to a track, but for public roads, it’s not something that is a substantial “need.” When I pushed it on a road local to me and posted a video of it, the commenters were sure to tell me I was going too fast.

I want to be clear that I have zero complaints about the Model Y Performance, and if it were to have come out ahead of me getting my AWD, I probably would have entertained the idea if I could have made the numbers work.

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The Model Y, from Standard to Premium, is a great car in every sense of the word. The ride quality is great, the build quality is excellent, and the interior and exterior features, as a whole, make it the best car in the world (to me).

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Elon Musk explains why Tesla’s 4680 battery breakthrough is a big deal

Tesla confirmed in its Q4 and FY 2025 update letter that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process.

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Credit: Tesla/X

Tesla’s breakthroughs with its 4680 battery cell program mark a significant milestone for the electric vehicle maker. This was, at least, as per Elon Musk in a recent post on social media platform X.

Tesla confirmed in its Q4 and FY 2025 update letter that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process.

Why dry-electrode matters

In a post on X, Elon Musk stated that making the dry-electrode process work at scale was “incredibly difficult,” calling it a major achievement for Tesla’s engineering, production, and supply chain teams, as well as its partner suppliers. He also shared his praise for the Tesla team for overcoming such a difficult task. 

“Making the dry electrode process work at scale, which is a major breakthrough in lithium battery production technology, was incredibly difficult. Congratulations to the @Tesla engineering, production and supply chain teams and our strategic partner suppliers for this excellent achievement!” Musk wrote in his post.

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Tesla’s official X account expanded on Musk’s remarks, stating that dry-electrode manufacturing “cuts cost, energy use & factory complexity while dramatically increasing scalability.” Bonne Eggleston, Tesla’s Vice President of 4680 batteries, also stated that “Getting dry electrode technology to scale is just the beginning.”

Tesla’s 4680 battery program

Tesla first introduced the dry-electrode concept at Battery Day in 2020, positioning it as a way to eliminate solvent-based electrode drying, shrink factory footprints, and lower capital expenditures. While Tesla has produced 4680 cells for some time, the dry cathode portion of the process proved far more difficult to industrialize than expected.

Together with its confirmation that it is producing 4680 cells in Austin with both electrodes manufactured using the dry process, Tesla has also stated that it has begun producing Model Y vehicles with 4680 battery packs. As per Tesla, this strategy was adopted as a safety layer against trade barriers and tariff risks. 

“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks,” Tesla wrote in its Q4 and FY 2025 update letter. 

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Even Tesla China is feeling the Optimus V3 fever

As per Tesla China, Optimus V3 is “about to be unveiled.”

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Credit: Tesla Optimus/X

Even Tesla China seems to have caught the Optimus V3 fever, with the electric vehicle maker teasing the impending arrival of the humanoid robot on its official Weibo account. 

As per Tesla China, Optimus V3 is “about to be unveiled.”

Tesla China hypes up Optimus V3

Tesla China noted on its Weibo post that Optimus V3 is redesigned from first principles and is capable of learning new tasks by observing human behavior. The company has stated that it is targeting annual production capacity of up to one million humanoid robots once manufacturing scales.

During the Q4 and FY 2025 earnings call, CEO Elon Musk stated that Tesla will wind down Model S and Model X production to free up factory space for the pilot production line of Optimus V3. 

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Musk later noted that Giga Texas should have a significantly larger Optimus line, though that will produce Optimus V4. He also made it a point to set expectations with Optimus’ production ramp, stating that the “normal S curve of manufacturing ramp will be longer for Optimus.”

Credit: Tesla China

Tesla China’s potential role

Tesla’s decision to announce the Optimus update on Weibo highlights the importance of the humanoid robot in the company’s global operations. Giga Shanghai is already Tesla’s largest manufacturing hub by volume, and Musk has repeatedly described China’s manufacturers as Tesla’s most legitimate competitors.

While Tesla has not confirmed where Optimus V3 will be produced or deployed first, the scale and efficiency of Gigafactory Shanghai make it a plausible candidate for future humanoid robot manufacturing or in-factory deployment. Musk has also suggested that Optimus could become available for public purchase as early as 2027, as noted in a CNEV Post report.

“It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does,” Musk said during the earnings call.

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