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Volkswagen boss believes €20k EV is coming during second half of 2020s

Volkswagen's Emden Plant (Credit: Volkswagen)

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Volkswagen boss Oliver Blume believes the company’s €20,000 ($21,714) electric vehicle could come in the second half of the 2020s, despite the fact the German automaker has not made an outright decision on producing such an affordable model yet.

Blume said at a conference today that he believes if Volkswagen decides to build an ultra-affordable EV for customers who are not willing to spend upwards of €30,000 or even €40,000 for a new car, it will come after 2025.

Blume said the key to reducing EV prices is first reducing battery costs, which will then result in cheaper electric cars that will bring more customers in at a more affordable price point. Right now, EVs are cheaper than they have ever been, and there are more options than in past years.

Still, there are a lot of companies that have not been able to bring prices down to a point where they are ultra-affordable. Even with government subsidies in many countries, which were created to entice consumers to buy more affordable EVs, many models are still too pricey for some car buyers to consider.

Many automakers have been discussing the potential for new, more affordable models, including Tesla, which has hinted that a €25,000 EV would be coming to the European market from Gigafactory Berlin in Germany.

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Tesla has also said that it will produce similarly priced models at Gigafactory Texas and in Shanghai. A production line has also been talked about at the upcoming Gigafactory Mexico.

In March, Volkswagen said it was discussing plans for a €20,000 vehicle, but no information regarding production timing or any specifics about the car were disclosed.

Volkswagen to stop selling gas cars in Norway in 2024: importer

“We have a responsibility to bring the right products at the right price onto the market,” Blume said, according to Reuters.

Volkswagen faces a similar problem to other EV makers that have not been able to bring prices down substantially to reach a new consumer sector. As early adopters of EVs were able and willing to spend tens of thousands, and sometimes more, on the early cars that hit the market, prices have come down as companies have scaled production to the point that they can offer slightly more affordable vehicles.

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However, there are still many car buyers who are simply priced out of these early models, and in order to hit lofty EV sales goals by the end of the decade, these companies are being forced to consider routes to bring more affordable EVs to their lineups.

“After early adopters were reached with electric cars, we now need consumers to be convinced by the technology, who don’t have the opportunity to install a charging station at home,” Blume added.

He also said that other challenges, like inflation, charging infrastructure, and subsidy removal, were holding back EV demand.

Last week, Volkswagen said it planned to launch a $35,000 EV in the U.S. within the next 3-4 years, which would bring more potential car buyers to VW when considering an electric car.

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 launches in India with Model Y, showing pricing will be biggest challenge

Tesla finally got its Model Y launched in India, but it will surely come at a price for consumers.

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Credit: Narendra Modi | X

Tesla has officially launched in India following years of delays, as it brought its Model Y to the market for the first time on Tuesday.

However, the launch showed that pricing is going to be its biggest challenge. The all-electric Model Y is priced significantly higher than in other major markets in which Tesla operates.

On Tuesday, Tesla’s Model Y went up for sale for 59,89,000 rupees for the Rear-Wheel Drive configuration, while the Long Range Rear-Wheel Drive was priced at 67,89,000.

This equates to $69,686 for the RWD and $78,994 for the Long Range RWD, a substantial markup compared to what these cars sell for in the United States.

Deliveries are currently scheduled for the third quarter, and it will be interesting to see how many units they can sell in the market at this price point.

The price includes tariffs and additional fees that are applied by the Indian government, which has aimed to work with foreign automakers to come to terms on lower duties that increase vehicle cost.

Tesla Model Y seen testing under wraps in India ahead of launch

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There is a chance that these duties will be removed, which would create a more stable and affordable pricing model for Tesla in the future. President Trump and Indian Prime Minister Narendra Modi continue to iron out those details.

Maharashtra Chief Minister Devendra Fadnavis said to reporters outside the company’s new outlet in the region (via Reuters):

“In the future, we wish to see R&D and manufacturing done in India, and I am sure at an appropriate stage, Tesla will think about it.”

It appears to be eerily similar to the same “game of chicken” Tesla played with Indian government officials for the past few years. Tesla has always wanted to enter India, but was unable to do so due to these import duties.

India wanted Tesla to commit to building a Gigafactory in the country, but Tesla wanted to test demand first.

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It seems this could be that demand test, and the duties are going to have a significant impact on what demand will actually be.

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Tesla ups Robotaxi fare price to another comical figure with service area expansion

Tesla upped its fare price for a Robotaxi ride from $4.20 to, you guessed it, $6.90.

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Credit: Tesla

Tesla has upped its fare price for the Robotaxi platform in Austin for the first time since its launch on June 22. The increase came on the same day that Tesla expanded its Service Area for the Robotaxi ride-hailing service, offering rides to a broader portion of the city.

The price is up from $4.20, a figure that many Tesla fans will find amusing, considering CEO Elon Musk has used that number, as well as ’69,’ as a light-hearted attempt at comedy over the past several years.

Musk confirmed yesterday that Tesla would up the price per ride from that $4.20 point to $6.90. Are we really surprised that is what the company decided on, as the expansion of the Service Area also took effect on Monday?

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The Service Area expansion was also somewhat of a joke too, especially considering the shape of the new region where the driverless service can travel.

I wrote yesterday about how it might be funny, but in reality, it is more of a message to competitors that Tesla can expand in Austin wherever it wants at any time.

Tesla’s Robotaxi expansion wasn’t a joke, it was a warning to competitors

It was only a matter of time before the Robotaxi platform would subject riders to a higher, flat fee for a ride. This is primarily due to two reasons: the size of the access program is increasing, and, more importantly, the service area is expanding in size.

Tesla has already surpassed Waymo in Austin in terms of its service area, which is roughly five square miles larger. Waymo launched driverless rides to the public back in March, while Tesla’s just became available to a small group in June. Tesla has already expanded it, allowing new members to hail a ride from a driverless Model Y nearly every day.

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The Robotaxi app is also becoming more robust as Tesla is adding new features with updates. It has already been updated on two occasions, with the most recent improvements being rolled out yesterday.

Tesla updates Robotaxi app with several big changes, including wider service area

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Tesla Model Y and Model 3 dominate U.S. EV sales despite headwinds

Tesla’s two mainstream vehicles accounted for more than 40% of all EVs sold in the United States in Q2 2025.

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Credit: Tesla Asia/X

Tesla’s Model Y and Model 3 remained the top-selling electric vehicles in the U.S. during Q2 2025, even as the broader EV market dipped 6.3% year-over-year. 

The Model Y logged 86,120 units sold, followed by the Model 3 at 48,803. This means that Tesla’s two mainstream vehicles accounted for 43% of all EVs sold in the United States during the second quarter, as per data from Cox Automotive.

Tesla leads amid tax credit uncertainty and a tough first half

Tesla’s performance in Q2 is notable given a series of hurdles earlier in the year. The company temporarily paused Model Y deliveries in Q1 as it transitioned to the production of the new Model Y, and its retail presence was hit by protests and vandalism tied to political backlash against CEO Elon Musk. The fallout carried into Q2, yet Tesla’s two mass-market vehicles still outsold the next eight EVs combined. 

Q2 marked just the third-ever YoY decline in quarterly EV sales, totaling 310,839 units. Electric vehicle sales, however, were still up 4.9% from Q1 and reached a record 607,089 units in the first half of 2025. Analysts also expect a surge in Q3 as buyers rush to qualify for federal EV tax credits before they expire on October 1, Cox Automotive noted in a post.

Legacy rivals gain ground, but Tesla holds its commanding lead

General Motors more than doubled its EV volume in the first half of 2025, selling over 78,000 units and boosting its EV market share to 12.9%. Chevrolet became the second-best-selling EV brand, pushing GM past Ford and Hyundai. Tesla, however, still retained a commanding 44.7% electric vehicle market share despite a 12% drop in in Q2 revenue, following a decline of almost 9% in Q1.

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Incentives reached record highs in Q2, averaging 14.8% of transaction prices, roughly $8,500 per vehicle. As government support winds down, the used EV market is also gaining momentum, with over 100,000 used EVs sold in Q2.

Q2 2025 Kelley Blue Book EV Sales Report by Simon Alvarez on Scribd

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