Musk canceled Tesla’s plan for a $25,000 ‘Model 2’ in 2024. However, with self-driving efforts stalling, a cheaper Tesla might be returning. Reports suggest Tesla is planning a new, affordable electric SUV not based on the Model 3 or Model Y, initially to be produced in China before arriving in the US and Europe. This move would contrast Elon Musk’s past statements against cheaper EVs, as he focused on developing robotaxis and humanoid robots instead. Tesla’s driverless ambitions have faltered, with robotaxis available only in Austin and still requiring supervision. Following the Model 2’s cancellation, Tesla released cheaper versions of the Model 3 and Model Y, but a truly affordable EV as promised by Musk remains unseen. With the loss of the EV tax credit and Musk’s political controversies, Tesla’s market needs a boost. There’s speculation that the new vehicle might combine both driverless and manual control, a significant shift from Tesla’s previous plans for fully autonomous cars. The company’s steering wheel-less Cybercab is still in focus, albeit with limited self-driving capabilities. Musk indicated that the Full Self-Driving tech needs over 10 billion miles for safety validation, with the current progress at 9.1 billion miles.
Tesla Reinstates Plan to Build Smaller, Cheaper EV: Report
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