With a price undercut at $23,000, Volkswagen’s plan to launch a new electric car could be the response to Tesla’s Model 3, its cheapest electronic car which costs $45,000 currently.
Volkswagen has been working hard on reviving its reputation after the ‘emission scandal’ for which it has been focusing on embracing electric vehicles among other things. Having promised to electrify 300 vehicle models by the year 2030 along with the installation of 2,800 charging stations across the US; the German car maker is turning focus on manufacturing new vehicles and its competitor and market leader Tesla in the EV market at present.
The electric car known as ‘MEB entry’ will be discussed in the supervisory board meeting on Nov. 16 for a green signal after which, with an aim to produce 200,000 vehicles a year in the beginning, three existing factories will be planned to convert for starting production of the entry- level electric vehicle, according to a source close to Volkswagen.
A confirmation from Volkswagen has not been secured. Volkswagen will gain a significant advantage over Tesla at the lower end of the market in case an electric car is possible in that price range.
However, whether or not the MEB entry comes close to competing with Tesla’s Model 3’s performance is yet to be seen.