- The future of the planned budget Tesla EV is in doubt, after Reuters reported that plans for the car had been scrapped, owing to strong competition from manufacturers such as BYD.
- Often referred to as the Model 2, the vehicle would likely be a global model, with economies of scale helping to keep its low price tag.
- Despite the several sources informing Reuters about the scrapping, Musk has publicly denied the rumours on X, formerly Twitter.
Will the Tesla Model 2 see the light of day?
Previously, we had expected to see the low-cost Tesla EV by as early as next year, with all-new production facilities for the car built across the globe. However, sources close to Reuters have now reported that the Model 2 was scrapped during a company meeting this February, with Tesla instead deciding to focus its efforts on autonomous ‘robotaxis’, due to be unveiled in August. Tesla CEO Elon Musk publicly denounced Reuter’s report on X, saying that Reuters were “lying”, but did not elaborate any further on the future of the Model 2.
Completely shutting off the idea of an affordable Tesla EV would be a strange move from the company, given the fact it has consistently brought down prices of its electric cars since the mass-market Model S was launched back in 2012, with a then sticker price of $57,400. However, competing against budget EVs from OEMs such as BYD, which is forecast to surpass Tesla’s global market share this year, and keeps its prices low partly due to a vertically integrated supply chain, won’t be an easy task.
