Tesla Model 2 scrapped, will focus on Robotaxi

  • Tesla Model 2 could have been priced at $25,000 in the US market.
Tesla Model 2
A sketch of an electric car that Tesla shared last year.
Tesla Model 2
A sketch of an electric car that Tesla shared last year.

For several years now, there have been rumours of a $25,000 Tesla, making it the most affordable one in their lineup. As of now, the most affordable Tesla is the Model 3 which starts at $39,000 in the United States. Now, Reuters has reported that Tesla has scrapped the plans for its most affordable electric vehicle which could have been called Model 2.

Instead of launching the Model 2, Tesla will now be focusing on self-driving robotaxis which will be based on the same platform as the Model 2. Elon Musk has announced that they will reveal robotaxi on 8th August.

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Cancelling the Model 2 project comes as a surprise because the primary objective of Elon Musk was to build an affordable electric vehicle that is accessible to everyone. His plan back in 2006 was to build a sports car and use the revenue to fund more accessible models. So, Tesla first built the Tesla Roadster and used the funds for the Model S sedan then the brand launched the Model X SUV. The latest additions to the portfolio were the Model Y and Model 3 which are currently one of the most affordable vehicles in Tesla's lineup.

However, there is also a possibility that the plans for Model 2 have just been postponed considering the fact that a $25,000 Tesla could be a huge success in the market not only in the US market, China and India also have a huge potential for small and affordable electric vehicles.

Also Read : Telangana govt in talks with Tesla to set up electric car plant: Report

The most recent launch from Tesla is the Cybertruck. There is a lot of hype around the new electric pick-up truck. This is the first time that a manufacturer has re-imagined a pick-up truck. The design of the Cybertruck is the biggest head-turner, it is very polarizing, few people love it while others hate it but nonetheless, Tesla has been able to grab a lot of eyeballs with the Cybertruck.

First Published Date: 06 Apr 2024, 10:44 AM IST
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