News
EVs like Teslas will be cheaper to produce than their internal combustion rivals by 2027
Recent forecasts from BloombergNEF have indicated that electric cars and vans will likely be cheaper to produce than conventional, fossil-fueled powered alternatives by 2027, with smaller cars reaching the same threshold the following year.
If EVs were to reach these milestones, vehicles powered by sustainable energy would likely earn the pole position to dominate new car sales by the middle of the next decade. This should allow companies like Tesla, and perhaps even newcomers like Rivian and Lucid Motors, to hit their pace in their efforts to break into the mainstream auto market.
Reaching price parity with cars equipped with an internal combustion engine has long been perceived as a critical milestone that would allow the transportation sector to transition from the burning of fossil fuels to be the use of more sustainable energy. This is one of the reasons why Tesla and other carmakers are investing heavily in the development of battery technology, considering that batteries remain one of the most expensive parts of an electric car.
Fortunately, the cost of producing EV batteries has fallen significantly over the years. Coupled with new carmakers embracing an all-electric lineup, as well as legacy automakers such as Volkswagen creating dedicated production lines for EVs in their facilities, all-electric vehicles may very well see their average prices drop within the next six years, as per BloombergNEF.
So far, the current average price for medium-sized electric cars is €33,300 ($40,495.80), while fossil fuel-driven cars have an average price of €18,600 ($22,619.27). By 2026, both EVs and internal combustion cars are expected to cost around €19,000 ($23,105.71). By 2030, electric cars are forecast to cost €16,300 ($19,822.27), while their internal combustion counterparts are expected to cost €19,900 ($24,200.19).
Inasmuch as BloombergNEF’s forecasts are favorable for electric vehicles, they are actually quite conservative. Investment bank UBS has predicted that electric cars will cost the same to produce as their internal combustion counterparts as early as 2024 instead. “There are not many reasons left to buy an ICE car after 2025,” Tim Bush, a UBS analyst, said.
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Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Elon Musk
Tesla Giga Berlin growth could stall if not “free from external influences”: Elon Musk
The comments were delivered in a pre-recorded video discussion.
Tesla CEO Elon Musk has reportedly warned that future expansion of Gigafactory Berlin could be jeopardized if the site does not remain “free from external influences.”
Musk’s comments were delivered in a pre-recorded video discussion with employees and came at a sensitive moment for the facility, where union representation has been a recurring issue.
According to reports from Handelsblatt and Der Spiegel, citing participants at the event, Musk suggested that if Giga Berlin is no longer “free from external influences,” further expansion would become unlikely. He did not, however, hint that the plant would shut down.
While Musk did not name IG Metall directly, his remarks were widely interpreted as referencing the union, which is currently the largest faction on the works council but does not hold a majority, as noted in an electrive report.
The video conversation was conducted between Musk in Austin and Grünheide plant manager André Thierig, then played back to the workforce in Germany. Works council elections are scheduled for early March, heightening the tension between management and organized labor.
The CEO has previously voiced concerns that stronger union influence could limit Tesla’s operational flexibility and long-term strategy in Germany.
Despite the warning on expansion, Musk praised the Giga Berlin site during the same address, describing it as one of the most advanced factories worldwide and highlighting its cleanliness and team culture.
The discussion also reportedly touched on battery cell production. According to attendees cited in German media, Musk indicated that Tesla has begun ramping cell production at the site. That would mark a notable shift from earlier expectations that large-scale cell manufacturing in Brandenburg would not begin until 2027.
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
Tesla Powerwall distribution expands in Australia
