Being the sole player in the world of electric cars, Tesla doesn’t face any direct competition so far. They are preparing for the future as a new Tesla Model 3 hatchback is in development. If inside sources are to be believed, the company is working on a new hatchback to directly rival the Volkswagen ID 3 model.

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The 2021 Model 3 hatchback could probably reach more customers than ever before because of its affordability factor. The legacy car maker brands like Volkswagen, Ford and Honda have planned to enter the electric car competition by 2025. While they do have multiple hybrid variants at this point, there is no word on having an all-electric SUV or sedan in the near future. It opens up business for Tesla to be aggressive in the market but they are not going to leave the base level hatchback editions untouched at this point.

Aimed at European Customers

According to the statement made by Elon Musk, head of Tesla, the new Model 3 will be a modified version of the existing sedan. The manufacturing plant located in Berlin, Germany will house the production for this car which will also serve as a way to get into the European market. Compared to countries like the USA, Canada or UK, the Europeans were faster to adopt electric cars in the past ten years. They have also been ahead when it comes to adopting charging stations instead of having gasoline stations all over the continent. It has enabled Tesla to focus more on the region.

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“We want to succeed in our mission and the best way to do so is by making cars that are affordable the majority of buyers. The cars that we are making right now aren’t as inexpensive as they are supposed to be. It is something that has been bugging me for a long time and we, as a team intend to fix it as soon as possible. We are looking to make a compact vehicle of some type so that it could be manufactured in large quantities and be distributed to buyers worldwide,” said Musk.

In the real world, the competition could be aimed at the Peugeot e-208 and Volkswagen ID 3. Both these hatchbacks are all-electric cars and are aimed at the affordable market where people are focused more on the pricing than the features it could offer. Volkswagen aims to sell it for 27,500 Pounds in the UK whereas a Tesla Model 3 costs 43,490 Pounds which is something the car company wants to fix real soon with a 2021 Model 3 hatchback.