Tesla has recently made the decision to cancel plans to build a so-called Model 2, which was rumored to be priced around $25,000. This move makes the $40,380 Model 3 the most affordable Tesla option on the market. The decision to scrap the Model 2 project is believed to be influenced by competition in the entry-level EV market, particularly from Chinese automakers. Tesla’s CEO Elon Musk has refuted reports of the cancellation, claiming that “Reuters is lying (again).”
The idea of a smaller, more affordable Tesla model has been circulating for several years, with the proposed vehicle being a small hatchback to compete with the Chevrolet Bolt and Nissan Leaf. However, with changes in EV demand and increased competition in the Chinese market, Tesla has shifted its focus away from the entry-level car towards the development of robotaxis. It is unclear when these robotaxis will be introduced and how they will impact Tesla’s production figures.
Despite the cancellation of the Model 2, Tesla continues to expand its lineup with the introduction of the Cybertruck. However, the Cybertruck is not considered an entry-level vehicle and may not see large-scale production in the near future. With the Model 3 being the most affordable Tesla option currently available, consumers looking to purchase a Tesla will have fewer choices at lower price points.
In conclusion, Tesla’s decision to cancel the Model 2 project reflects the changing landscape of the EV market and the company’s strategic priorities. The shift towards developing robotaxis indicates Tesla’s focus on innovative transportation solutions for the future. While the cancellation may disappoint consumers hoping for a more affordable Tesla model, the company’s commitment to advancing technology and expanding its product range remains evident.