BERLIN: Tesla will build a 25,000-euro ($26,837.50) car at its factory near Berlin, a source with knowledge of the matter said on Monday, in a long-awaited development for the electric vehicle maker which is aiming for mass uptake of its cars.

The source, who declined to be named, did not specify when production will begin.

Tesla declined to comment.

Tesla Chief Executive Elon Musk visited the plant in Gruenheide, near Berlin, on Friday, after attending an artificial intelligence summit in England.

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The CEO thanked staff at the plant for their hard work, according to a video posted on X, formerly known as Twitter.

At the same meeting, he also informed staff of plans to build the 25,000-euro vehicle there, the source said. Musk has long teased the prospect of a more affordable electric car, but said in 2022 he had not yet mastered the technology so shelved the plan.

Still, sources told Reuters in September the carmaker was closing in on an innovation that would allow it to die cast nearly all of the underbody of the electric vehicle (EV) in one piece, a breakthrough that would help speed up the production process and bring down costs.

Expanding into the mass market is critical to meeting Tesla’s goal to increase vehicle deliveries to 20 million by 2030.

But a weak economy and high interest rates have hit demand for electric vehicles, prompting Tesla and others to cut prices in recent months in an attempt to boost sales.