Tesla (TSLA:US) shares were seen trading higher in early Monday trade after a report that the electric vehicle company is planning to manufacture a new electric vehicle model with an expected price of €25,000 ($26,863) at its factory near Berlin.
The news comes as competition intensifies in the electric vehicle market to produce more affordable options. The plan for this new model was reportedly announced by Chief Executive Officer Elon Musk during his recent visit to the Tesla factory in Gruenheide, according to Reuters.
Tesla stock rose 3% on the news.
The report does not specify the production start date for this vehicle. Currently, Tesla's least expensive car in Germany is the Model 3, which starts at €42,990.
In addition to the new vehicle plans, Tesla's management in Germany has informed its 11,000 workers that they will receive a 4% wage increase starting in November, according to a separate report in the Wall Street Journal.
The company will also provide a €1,500 ($1,609) bonus in December to offset inflation, and annual wages for German workers will see an additional increase of €2,500 from February onwards. This wage increase comes in response to concerns raised by unions about workers' earnings being below the industry average.
Congressman Mike Garcia was selling Tesla shares over the summer. Several other Congress members, including Sheldon Whitehouse, Josh Gottheimer, Ro Khanna, and Michael Guest, were also trading shares this year.