Tesla could come up with a smaller model for Europe, which makes sense, according to CEO Elon Musk. “Possibly in Europe it would make sense to do, I guess, a compact car, perhaps a hatchback or something like that,” the now second richest man in the world told a European online conference on batteries hosted by the German government, reported by Reuters.

“In the US, the cars tend to be bigger for personal taste reasons. In Europe, (they) tend to be smaller,” Musk said, adding that he had problems parking his Tesla Model X SUV in the German capital. “I was driving a Model X around Berlin and we had quite a bit of trouble finding a parking space where we could fit,” he remarked.

Besides the Model X with rear gullwing doors, Tesla also has the archetypal Model S, the smaller and more affordable Model 3, and the Model Y, a seven-seater crossover based on the Model 3. The Model 3 is much larger than the typical European family car, with the Volkswagen Golf being the best example.

Musk has also been quoted as saying that an affordable EV would be developed by Tesla designers in China and Europe, and for sure, the end product will be well-suited for their markets. At the company’s Battery Day in September, Tesla said that within three years, it will present a new model that will cost just $25,000 thanks to lower battery manufacturing costs. There’s also a possibility of the RM2 trillion EV maker setting up a battery shop in Indonesia, which has the world’s biggest nickel reserves.

What’s confirmed is a Gigafactory in Germany, the home of Europe’s car giants. Click on the links for more on the topics.

Smaller models, China and Europe for global expansion – sounds familiar? Rivian, an EV upstart backed by the likes of Amazon and Ford, said the same things last week.