BERLIN — Tesla CEO Elon Musk mentioned the automaker has stopped work for now on a compact electrical automobile, which earlier stories mentioned was being developed for the European market.

“We aren’t at the moment engaged on a $25,000 automobile,” Musk mentioned throughout the firm’s fourth-quarter earnings name on Jan. 26. “In some unspecified time in the future we’ll. However we have now sufficient on our plate proper now — an excessive amount of on our plate frankly,” Musk mentioned.

Media stories had mentioned Tesla plans to launch the Mannequin 2 as its smallest automobile and that it might be constructed on the firm’s manufacturing unit now nearing completion in Gruenheide outdoors of Berlin, Germany.

Musk instructed analysts on the earnings name that Tesla can be focusing its efforts this 12 months on growing capability at present crops in California and China and starting manufacturing at its new factories in Austin, Texas and Gruenheide.

He mentioned the automaker wouldn’t be launching any new fashions in 2022, pushing again the launch of its Cybertruck electrical pickup to subsequent 12 months.

“It is vital to start the ramp of Austin and Berlin to make sure that we’re ready as soon as limitations ease, enabling us to extend whole output extra shortly sooner or later,” he mentioned.

“We have begun manufacturing at each Texas and Berlin — we began that final quarter. However that is not an important factor. We focus extra on once we get to quantity manufacturing and when can we ship vehicles to clients,” Musk mentioned.

Tesla is at the moment carrying preproduction testing on the Gruenheide manufacturing unit whereas it awaits closing approval from native authorities. Musk mentioned he would go to the plant in mid-February. Bureaucratic hurdles and an ongoing courtroom case over the manufacturing unit’s water use have delayed the opening of the ability for months.

Tesla’s European car gross sales rose 72 % to 168,613 final 12 months, in accordance with JATO Dynamics market researcher.

The Mannequin 3 was the automaker’s bestseller in Europe with140,421 gross sales, up 63 % year-on-year, making it Europe’s top-selling full-electric automobile.  Tesla started importing the Mannequin Y into Europe from China in July and bought 27,839 models, in accordance with JATO. The corporate bought 230 Mannequin X SUVs  and 133 Mannequin S sedans.

Tesla has mentioned as much as 500,000 Mannequin Y midsize SUVs may very well be produced on the Grunheide plant as soon as it’s totally operational.

Tesla’s fourth-quarter internet revenue rose to $2.3 billion, whereas revenues jumped 65 % to $17.7 billion as the corporate managed to promote a report variety of autos regardless of provide chain headwinds.